The external sector

The shock waves from the crisis that erupted in Asia in 1997 were transmitted to Latin America and the Caribbean through the external sector, where both merchandise trade and capital flows were adversely affected. The main trade effects were a steep decline in the prices of commodities, which make up the bulk of the region’s exports, and a weakening of external demand in many of the countries. The first of these factors led to a drop in unit values for exports, and the second to a slowdown in the growth of export volumes -compounded, in some countries, by the destruction of export crops as a result of weather-related natural disasters. The end result was that the region’s export earnings fell for the first time since 1986 and the growth of the purchasing power of exports slowed considerably.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions