Latin America. According to the report, Panorama of the international insertion of Latin America and the Caribbean 2008-2009: Crisis and spaces of regional cooperation, presented by ECLAC (Economic Commission for Latin America), exports and imports of the countries of the region will experience a fall of 13% in 2009, higher than the 10% forecast for world trade.The commission states that the volume of the region's exports will fall by 11%, becoming the worst result since 1937. Imports will decrease by 14%, something that did not happen 27 years ago (since 1982).
The report explains that the trade collapse was due to the decline in international demand, the fall in the price of some basic raw materials, the difficulties for trade financing and the procyclical behavior of intraregional trade flows, especially in South America.
Despite the sharp trade contraction, the report highlights that the region has withstood the effects of the current crisis better than in the past, thanks mainly to the macroeconomic strengths left by the favourable economic cycle of 2003-2007.
ECLAC estimates that in two or three years international trade will once again be a source of opportunities, so the region must prepare.
The report proposes the creation of a cooperation programme to stimulate intraregional trade, coordinating the participation of countries and multilateral and regional organizations in such a way as to strengthen the mobilization of financial resources.
It also highlights the importance of diversifying the productive and export base, incorporating greater value and knowledge in exported goods and services, which requires greater coordination within the government and with the private sector to stimulate innovation and the training of human resources.
Source: www.eclac.org
