With the COVID-19 pandemic receding in much of Latin America, the export sector in the region has begun to see a significant improvement in business.
More than 50% of exporting firms are expecting an increase in international demand over the next three months, according to a study by the Inter-American Development Bank (IDB).
In the survey, most of the respondents stated that they were expecting to see a 57% jump in foreign demand over the coming year, up from 36 % in 2020. The study also found a 35% increase in export volume in the first quarter of 2021.
Latin America is known for mineral exports. However, these days, an increasing number of exporting firms are eager to adopt environmentally friendly measures, saying that will facilitate their insertion into global value chains.
“It’s encouraging to see that in the second year of the pandemic, companies recovered their export performance and anticipate significant trade improvements in 2022,” says Fabrizio Opertti, manager of the IDB’s Integration and Trade Sector.
Considering the survey, Latin American exporters want their country to have more liberal trade agreements with other countries, particularly the United States.
Unlike other sectors, exporting firms in the region have received assistance from their governments to mitigate the impact of the pandemic.
“It’s also worth noting that government assistance to cope with the negative effects of the pandemic has increased, according to the firms,” Opertti added.