Latin American Trade Roundup June
As specialist logistics service providers to and from the region, Envío have summarised a few recent items of Latin American trade news below.
Paraguay – Foreign Trade Rebounds
A Central Bank of Paraguay report revealed that the country’s exports reached a total value of $7.1m in May, which was a significant 26.9% increase compared to the same month in 2022. The export increase has been widely attributed to higher sales of soy, electricity, and rice. Cosmetic products are also believed to have contributed significantly, reaching $438m of revenue, which is an 8.9% increase on the same period last year. Meanwhile, imports rose by a more modest 2.5%.
Mexico – Lower Inflation Rates
Mexico’s headline inflation appears to have reached its lowest level in over two years, following a year-on-year decline of almost 6%. With the country’s inflation easing, it is believed that that the Mexican central bank – Banco de México – will decide to leave interest rates unchanged at 11.25% when it meets this week, which would represent the second month in a row that the bank has not hiked rates.
Costa Rica – Loan of £500m from World Bank
The World Bank recently approved a new $500m loan to Costa Rica that will support the country post-pandemic to grow employment, through assisting its small and medium sized businesses. Costa Rica has made good progress in environmental, economic, and social areas but poverty remains an ongoing challenge. The 19.5 year long loan includes a four-year grace period, with an interest rate based on SOFR and a variable margin in U.S. dollars.