Exports from Uruguay drop 3.5% in the first quarter

Exports from Uruguay and other Latin American countries are facing a significant slowdown following the end of the post-Covid-19 recovery period. According to a report by the Inter-American Development Bank (IDB), exports in the first quarter of 2023 increased by a mere 2.9%, a stark contrast to the impressive 16.4% growth observed the previous year.

The decline in commodity prices, including oil, coffee, and iron, coupled with a reduction in export volumes, are the primary factors contributing to this situation. However, the report emphasizes that the region’s trade performance has outperformed the global average.

During the first quarter of this year, South America experienced a decline of 0.3% in exports, with most countries in the region showing negative indicators. Uruguay fared relatively better with a decrease of 3.5%, while Colombia and Peru dropped by 4.7% and 4.8%, respectively. Ecuador saw a decline of 7.7%, Argentina 17.9%, Venezuela 20.2%, and Bolivia 23.5%.

Paraguay (+23.4%), Chile (+10.7%), and Brazil (+4.8%) were the exceptions to the rule, showcasing export growth in South America.

Imports in Latin America also experienced a slowdown in the first quarter of 2023, with a meager increase of 0.6% compared to the substantial 21.1% growth witnessed in the same period of 2022.

Economist Paolo Giordano, the study’s coordinator, noted that the expansive economic cycle that followed the Covid-19 pandemic has come to an end. He further emphasized that the trend of decelerating exports is expected to continue into the second quarter, with stabilization projected for the year’s second half.

May Results

Uruguay faced a significant decline in good exports in May, with a staggering 31% reduction compared to the same month in the previous year, according to data released by Uruguay XXI. Year-to-date, exports have fallen by 14%.

This decline can be partially attributed to the decrease in beef exports, both in terms of volume and price. It is important to note that the sector witnessed exceptional performance last year, achieving record volumes and prices.

Additionally, the export figures reflect the impact of decreased soybean production due to this year’s drought, which is evident in the May data and is likely to have further implications in the coming months.

The chart below, made with DataLiner data, shows Uruguay’s container exports between Jan 2019 and Apr 2023.

Containerized exports from Uruguay | Jan 2019 – Apr 2023 | TEU

Source: DataLiner (click here to request a demo)

Considering this context, Uruguay XXI has provided a projection for the export performance throughout the year, considering the factors mentioned earlier and forecasts for key sectors. The agency estimates that Uruguay’s exports will reach approximately US$11.920 million, representing an 11% decline compared to the previous year.

Source: Àmbito

To read the original piece, visit: https://www.ambito.com/uruguay/las-exportaciones-bienes-cayeron-un-35-el-primer-trimestre-n5742487