Uruguay’s exports in 2023 reached $11.518 billion, a 13% decline from 2022’s record high of $13.356 billion.
Uruguay XXI, the trade promotion body, reported these figures on Tuesday. Beef led the exports, earning $2.081 billion, 18% of the total.
Following beef, cellulose exports increased by 7% to $2.019 billion, while dairy products fell by 7% to $818 million.
Soybeans, previously second in export value, dropped to eighth place at $414 million due to an unprecedented drought.
This drought adversely affected summer crops, impacting overall export figures.
China, the top market for Uruguayan exports, saw a 33% reduction in purchases, totaling $2.510 billion. Brazil and the European Union were the second and third largest markets.
The decrease in exports is linked to modest economic growth in developed countries, falling commodity prices, and domestic challenges like the drought.
Uruguay XXI forecasts a recovery in exports for 2024, driven by better weather and a more favorable global environment.
However, they predict exports may not reach the record level of 2022.
This scenario reflects the interplay between domestic agricultural conditions and global economic trends impacting Uruguay’s export performance.
Background
Uruguay’s 13% export decline in 2023 reflects wider Latin American economic challenges.
Compared to regional peers, this downturn highlights the impact of both external market fluctuations and internal factors like drought on smaller economies.
Heavily reliant on China, Uruguay’s export decrease underlines the need for diversified trade partnerships.
The drop also emphasizes agriculture’s vital role in Uruguay’s economy and the significant effects of climate change.
Optimistic yet cautious, Uruguay XXI’s 2024 forecast anticipates recovery but remains wary of global economic uncertainties.
Overall, Uruguay’s experience underscores the importance of trade diversification and sectoral balance for small economies in a dynamic global market.