No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsLatin AmericaECLAC projects 23% drop in exports in Latin America and the Caribbean...

ECLAC projects 23% drop in exports in Latin America and the Caribbean due to pandemic

International trade in Latin America and the Caribbean could fall 23% in 2020 due to the impact of the coronavirus pandemic, which will also cause a decline in imports in the region, the Economic Commission for Latin America and the Caribbean (ECLAC) concluded in a report released Thursday.

In addition to the 23% contraction in the value of regional exports, the report, titled “Effects of COVID-19 on international trade and logistics,” projects that the value of imports will drop 25%.

The decrease occurs in a global context in which world trade has recorded a 17% drop in volume between January and May 2020.

“Latin America and the Caribbean is the developing region most affected by this situation, and it will be marked mainly by reduced shipments of manufactured goods, minerals and fuel,” the report stressed.

Trade in minerals and oil, with a drop of 25.8%, recorded the greatest setbacks between January and May of this year compared to the same period in 2019, followed by manufacturing (-18.5%).

The agriculture and livestock sector marked a slight increase of 0.9%.

“That reflects the fact that demand for food is less sensitive to contractions in economic activity, since it is an essential good,” the report said.

ECLAC noted that only four countries, all Central American, increased their exports between January and May 2020: Costa Rica (2%), Honduras (2%), Guatemala (3%) and Nicaragua (14%).

“This is due to a combination of greater sales of medical supplies and personal protective gear, and of agricultural products (the demand for which has been less affected by the pandemic),” the report says, also noting “the relative resilience exhibited by intra-Central American trade.”

Another aspect addressed by the report is the collapse of tourism (-50%) that will impact service exports, especially from the Caribbean.

Intraregional trade will also show a sharp contraction of 23.9%, especially in manufacturing.

ECLAC warns this “will lead to a loss of industrial capacity and a reprimarization of the region’s export basket.”

The report concluded by suggesting Latin America and the Caribbean countries can rebound better from the pandemic by reducing internal costs and promoting “efficient, smooth and secure logistics.”

Trending Now

Costa Rica Maintains Economic Stability Amid Global Tensions

Costa Rica is holding steady economically despite global tensions sparked by conflicts involving Israel, the United States, and Iran, according to Federico Quesada Chaves,...

An Expat’s Take: 5 Burning Questions About Life in Costa Rica Right Now

Have you been keeping up with the various events taking place in Costa Rica? There is always something interesting going down, and here are...

Costa Rican Health Officials Sound Alarm Over Teen Vaping Epidemic

Vaping has become increasingly popular, especially among teenagers and young adults. However, the health consequences associated with its use are raising alarm among Costa...

El Salvador Slams Paris Fashion Show Inspired by Cecot Mega-Prison Inmates

The president of El Salvador, Nayib Bukele, joked on Saturday that he could send inmates from his mega-prison to France, after they were represented...

Guatemala Offers Asylum to Nicaraguan Migrants Deported by U.S.

Guatemalan President Bernardo Arévalo announced on Friday that his country will grant asylum to Nicaraguan migrants deported by the United States who do not...

Former Costa Rican Minister Arrested for Drug Trafficking, Faces U.S. Extradition

Costa Rica’s judicial police arrested Celso Gamboa, a former security minister and Supreme Court judge, on Monday, following a U.S. request for his extradition...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica