Latin America's trade deficit is set to rise sharply this year.
Latin America's export performance in 2013-15 will be the worst since the Great Depression, according to a report released by the UN Economic Commission for Latin America and the Caribbean (ECLAC) on October 20. External factors led by China's slowing growth, have been exacerbated by problems endogenous to the region -- principally a lack of export diversification and very limited participation in global value chains.
LAC's goods exports will drop to an estimated 929 billion dollars this year, down from 1,079 billion in 2014.
LAC's trade deficit with China, equivalent to almost 80% of its exports to this market in 2014, will widen further this year.
Investment in trade-facilitating public infrastructure will be constrained by the fiscal impact of lower exports.
