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    Mexico and "energy-exporting countries" were the hardest-hit by the decrease in the trade as the price of oil plummeted 29.2 percent between January and August 2020. | Photo: EFE/ German Reyes

Published 18 November 2020
Opinion

The IDB revealed that although exports to the United States, the European Union, and China considerably impacted the estimations "because of the size of those markets," the reduction in intraregional trade "was even more intense."

Exports from Latin America and the Caribbean decreased by 16 percent in the first half of the year amid the COVID-19 pandemic, the Inter-American Development Bank (IDB) reported on Wednesday.

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The IDB latest report highlights that Latin America's contraction was more significant than the world average, which fell by 13.3 percent. In particular, the export of services decreased for the first time since 2015 as the COVID-19 pandemic has influenced more severely trade-in benefits than the trade in goods.

"The commercial shock has been less than initially expected, and there are some signs of recovery. However, new outbreaks and containment measures could affect the recovery of global business activity, which had already been weakening before the health crisis," Principal Economist of the Integration and Trade Sector of the IDB Paolo Giordano explained.

The IDB revealed that although exports to the United States, the European Union, and China considerably impacted the estimations "because of the size of those markets," the reduction in intraregional trade "was even more intense."

According to the report, "exchanges fell 30.3 percent in the Andean Community; 24.6 percent in MERCOSUR; 24.0 percent in the Pacific Alliance and 8.8 percent in Central America and the Dominican Republic.

Moreover, Mexico and "energy-exporting countries" were the hardest-hit by the trade decrease as the price of oil plummeted 29.2 percent between January and August 2020, the IDB points out.

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