Exports from Central America and the Dominican Republic give relief in 2022
In the first quarter of this year, everything pointed to a positive indicator in the region’s exports (19.2%), according to the Central American Goods Trade Monitor prepared by the Secretariat for Central American Economic Integration (SIECA).
The positive result indicated that a trend towards commercial recovery was maintained after the impact generated by the covid-19 pandemic, showing resilience since 2020.
However, the latest report published by the Inter-American Development Bank (IDB) indicated that in Central America, after a general recovery in 2021 (26.6%), exports slowed down in the first half of 2022 (18.2%) and imports increased at a higher rate (42.5% and 31.0%, respectively), determining a widening of the deficit.
According to the IDB, only Guatemala and Honduras registered higher growth rates of their exports in the first half of 2022 compared to the average for 2021. Intrazone sales increased 30.1% in 2021 and represented 22.4% of the total.
The main contributions to the increase in intra-zone trade in 2021 were the shipment of plastic products from Guatemala to El Salvador and Honduras; of plastic and paper products from El Salvador to Guatemala; of clothing and plastics from El Salvador to Honduras; and food, electrical and plastic products from Costa Rica to intra-zone partners.
These are the products and services that Central America and the Dominican Republic exported the most as of October 2022 (except those of El Salvador, because the data is up to August, and Panama as of September):
GUATEMALA
Data from the Bank of Guatemala (Banguat) as of last October showed that the total amount of general trade exports stood at US$13.274 billion, higher by US$2.077 billion (18.5%) than the amount registered at October 2021 (US$11.198 billion).
The most important products, according to their participation in the total value of exports, were:
- Clothing items, with US$1.580 billion (11.9%)
- Coffee, with US$1,079 billion (8.1%)
- Edible fats and oils, with US$983.5 million (7.4%)
- Banana, with US$810.3 million (6.1%)
- Sugar, with US$ 50.2 million (4.9%)
These products represented 38.4% of the total exported.
The main export destinations according to their participation were: Central America with US$ .404 billion (33.2%); United States of America with US$4.209 billion (31.7%); Eurozone with US$1.284 billion (9.7%); Mexico with US$573.8 million (4.3%); and the People’s Republic of China with US$ 377.3 million (2.8%); countries and regions that together accounted for 81.7% of the total.
EL SALVADOR
According to the Central Reserve Bank of El Salvador (BCR), exports from that country as of August 2022 totaled US$5.091 billion, US$728.7 million higher than what was exported in the same period of 2021, equivalent to to a growth of 16.7%.
The greatest contribution to growth came from the increase of US$518 million in exports of goods produced by the manufacturing industry and non-agricultural sectors. Of this amount, US$321.6 million was exported to Central America and US$196.4 million to countries outside that region.
For its part, the maquila industry contributed US$128.9 million, while agricultural products such as coffee and sugar contributed US$81.8 million.
The main exported products were knitted shirts and t-shirts with US$564.9 million (12.5% growth); in second place are sweaters, pullovers and the like with US$348.7 million (25.4%); followed by plastic items for transport and packaging with US$220.1 million (26.8%); electronic micro-condensers with US$183 million (15.4%) and coffee with US$174.6 million (59.9%).
The Central Bank of Honduras indicated in its latest report that international trade in general merchandise registered a deficit of US$7.386 billion as of October 2022, which represents US$1.059 billion year-on-year (16.7% ).
For their part, exports presented an increase of US$955.6 million (21.9%), where products such as bananas, coffee, crude palm oil, food products, plastic products and sugar stand out.
It should be noted that in the period analyzed, imports exceed the amount exported by 2.4 times, less than the ratio of 2021 (2.5 times); however, said ratio confirms that Honduras continues to be a net importing country, particularly due to higher purchases of fuel, industrial supplies, and food and beverages, the monetary authorities said.
The Nicaraguan Minister of Finance and Public Credit, Iván Acosta, said that Nicaragua had “a good year” in economic matters, and highlighted the behavior of exports and remittances in 2022.
Nicaragua will close 2022 with total exports of US$7.5 billion, the official said.
Acosta pointed out that of the 20 main products, 15 are advancing in prices positively and 14 of the 20 main ones are growing in volume.
The items that contribute the most value are: raw gold US$855 million; coffee US$679 million; cane sugar US$152 million; beans US$111 million; peanuts US$99 million; Liquid, alcoholic beverages and vinegar US$69 million, fish US$58 million.
COSTA RICA
Costa Rica increased its exports of goods by 13% between January and October 2022, compared to 2021, according to the most recent data published by the Foreign Trade Promoter (Procomer). In absolute terms, the value of shipments was US$9.354 billion, US$1.044 billion more compared to the same period of the previous year.
Regarding the performance of the different sectors, the most dynamic areas of growth between 2021 and 2022 stand out: pharmaceutical chemistry (28.5%) and food (20.6%), in which there was great demand, consequence of the pandemic.
The figures do not include the data for April, May and June of each year, due to hacking suffered by the Ministry of Finance in its computer systems during the first half of the year, it was explained in a press release.
Among the main products exported, in addition to medical devices that represent 33% of the total, bananas and pineapples stand out with 7% each; syrups for carbonated drinks, with 3%; and gold coffee with 2%.
PANAMA
From January to September of the current year, Panamanian exports recorded revenues of US$2.814 billion
Bananas, teak, palm oil and iron and steel scrap, as well as sea products continue to lead Panamanian exports, which until September of this year totaled US$653.9 million.
The figure represents 18% more than the US$554.3 million registered in the same period of 2021, according to its FOB value, according to statistics from the Ministry of Commerce and Industry.
The five exportable products from Panama had as their port of arrival the United States, the Netherlands and China.
When referring to general exports, reports from the National Institute of Statistics and Census indicate that from January to September of the current year, they recorded revenues of US$2.814 billion.
These exports include copper concentrate, marking an accumulated performance higher than the same period in 2021, at 8.8%.
DOMINICAN REPUBLIC
The Ministry of Economy, Planning and Development of the Caribbean country highlights the positive performance exhibited by agricultural and manufacturing exports, according to the Sectoral Panorama report corresponding to October 2022.
The document, prepared by the Directorate of Sectoral Economic Analysis of the Vice Ministry of Economic and Social Analysis details that, so far this year, agricultural exports have registered a value of US$786.9 million, for a variation of 7.1% compared to the same period of the previous year.
He explains that this behavior is mainly due to the increase, both in price and in volume exported, in the items of raw tobacco and fruit.
In turn, accumulated exports of local manufacturing were 26.2% above those registered in January-October 2021. It adds that manufacturing exports from free zones increased by 9.2% compared to the same period of the previous year, and reached an accumulated amount of US$6.162 billion.
With information form Bloomberg
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