Latin American exports to drop to 72-year low

27 August 2009

Latin America and the Caribbean this year will see the largest drop in exports since 1937, according to the Economic Commission for Latin America and the Caribbean (ECLAC).

The United Nations commission says in a report that the volume of exports from the region will decrease 11% over the year, with imports falling 14% to mark their biggest contraction in 27 years.

The report blames a strong contraction of world demand and regional trade caused by the financial crisis, lower prices of some commodities, and difficulty in raising financing.

Country’s which rely heavily on commodity exports are expected to be among the worst hit with exports from Venezuela, Ecuador, Colombia and Bolivia all expected to fall by 32.6% this year on an annualised basis.

Recommendations suggested by the commission include programmes to stimulate intraregional trade and coordination between governments in the region to promote diversification in the economy away from commodity reliance.

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