As a company shipping to Latin America, it’s important to understand the economic climate of this region of the world. Depending on the countries you most often send cargo to, there may be various factors impacting their economic growth and stability. Various organizations have analyzed the economic situation in 2017 and forecasted 2018’s trends. The following are some of the most important trends and shifts that U.S. companies should be aware of.
Argentina will experience inflation.
While companies shipping to Venezuela are aware of the skyrocketing inflation there, upwards of 2,000% next year, other countries are impacted as well. According to Focus Economics, Argentina will experience an inflation rate of 16.3%. For all of Latin America, the inflation rate will be 5.3%. Argentina is followed by Uruguay (7.1%), Bolivia (4.5%), and Brazil (4%).
Natural disasters may hinder growth in Mexico
Focus Economics predicts that earthquakes and a dip in consumer spending will cause a dip in Mexican economic growth. As the country faces high inflation rates, consumers are not spending in much as they were earlier in 2017. The terms of NAFTA and approaching elections may also have an impact on the economy.
The Dominican Republic will continue steady growth
U.S. companies shipping to the Dominican Republic should know that the Dominican economy is on a steady upward trend. This is according to The Canadian Trade Commissioner Service. This growth will specifically impact the financial, agricultural, mining, and construction industries. If you are considering Dominican shipping, these industries could provide potential.
Brazil shows signs of economic recovery
Brazil’s political climate in the coming year will likely determine economic trends in 2018, according to Focus Economics. But overall, the country does show a promising trend. Specifically, the job market has improved and inflation has gone down. This could be good news for companies shipping to Latin America, as Brazil is one of the region’s largest countries.
Air cargo represents 30% of the total international shipment value, and Latin America is an essential part of this. American cargo shipping to Latin America is an important business, as trade is an essential part of economic relationships in the western hemisphere. By staying aware of Latin American shipping and economic trends, your business can improve its shipping practices and predict trade projections.