Latin America and the Caribbean’s Exports Rose 19.5%, Opening Opportunities to Attract More Foreign Investment, IDB Says
WASHINGTON, Nov. 03, 2026 (GLOBE NEWSWIRE) -- Goods exports from Latin America and the Caribbean grew 19.5% year-on-year in the first half of 2026, outpacing the 14.5% increase in world trade, driven by higher prices for oil and other commodities and by demand for infrastructure associated with artificial intelligence (AI). The region’s strong export performance opens an opportunity to attract more foreign investment, according to the Trade and Integration Monitor 2026 published by the Inter-American Development Bank (IDB).
The report notes that, despite a challenging global environment, the region delivered a strong performance, driven mainly by higher export volumes, with rising prices also contributing. Mexico led regional growth (24.6%) on the back of sales of AI infrastructure equipment to the United States. Export growth in the Caribbean (19.1%), concentrated in Guyana and Suriname, and in South America (16.5%) was driven by higher prices for mining and energy products, particularly oil.
“The trade resilience of Latin America and the Caribbean is an opportunity to attract more investment. To seize it, the region can pair its international trade and investment commitments with complementary domestic regulatory frameworks that give investors certainty,” said Paolo Giordano, Principal Economist in the IDB’s Productivity, Trade, and Innovation Sector.
Key findings of the Monitor
- Greater presence in international markets: Latin America and the Caribbean’s share of U.S. imports, the main destination for the region’s export growth, reached a record high of 22.1% in the first half of 2026, even as U.S. purchases from the rest of the world declined. The region also regained market share in Europe.
- Investment opportunities: Although the region still attracts more foreign direct investment (FDI) relative to the size of its economy than any other region, it received 4.5% less investment in 2023–2025 than in 2012–2014, and its share of the global FDI stock fell from 7.1% to 6.0%.
- Regulatory architecture as a strategic asset: The region can benefit from double taxation treaties, bilateral investment treaties, and trade agreements with investment chapters, as these are associated with a higher likelihood of investment ties between countries.
According to the Monitor, the provisional application of the EU-Mercosur trade agreement, the modernization of other trade agreements, and the reshaping of global value chains driven by artificial intelligence and the energy transition open a window of opportunity for the region. The report therefore argues that the region’s external trade agenda should be accompanied by complementary reforms to national regulatory frameworks and by investment in public goods that lower the costs faced by private companies when expanding into international markets.
About the IDB
The Inter-American Development Bank (IDB), a member of IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise, and knowledge, the IDB promotes growth and well-being in 26 countries. Visit our website: https://www.iadb.org/en
Press contact:
Andrés Cavelier
+1 (202) 623-3669
acavelier@iadb.org
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