The same World Bank report that predicted a bleak 2024 for Argentina forecast 3,2% growth for Uruguay in a region that is heading for a poor average performance.
The World Economic Outlook published Tuesday in Washington DC projected average growth in Latin America and the Caribbean of 1,8% in 2024 before recovering to 2,7% in 2025 as interest rates and inflation slow. According to the study, commodity prices will support the region's exports, although weak growth in China could limit demand. In the case of Uruguay, the World Bank forecasts growth of 2,6% for both 2025 and 2026.
“The region’s economic performance will depend on a combination of domestic and international factors, with commodity prices and global demand playing a moderating role in this outlook,” the document states. Also this week, the World Bank published an update to its 2023 Container Port Performance Index that ranked Montevideo 384th out of 405 ports surveyed worldwide, down significantly from 248th last year. The study focused on the cost and space utilization of each facility.
Regionally, Montevideo ranked 60th out of 64, with Imbituba and Itajaí from Brazil, Acajutla (El Salvador) and Kingston (Jamaica) below. The best ports were Cartagena (Colombia), followed by Callao (Peru), Posorja (Ecuador), Buenaventura (Colombia), Rio de Janeiro (Brazil), Lázaro Cárdenas (Mexico), Salvador (Brazil), Puerto Limón (Costa Rica), Itapoá (Brazil) and Altamira (Mexico). Buenos Aires ranked 33rd, a slight improvement from 38th regionally in 2022.
The World Bank highlighted that ports and terminals – especially container terminals – can cause shipping delays, supply chain disruptions, additional costs and reduced competitiveness. Optimal performance encompasses factors such as port efficiency, required draft, berths and docking facilities, and the effectiveness of procedures used by government agencies for clearing containers. The paper also notes that any inefficiencies or non-tariff barriers between these actors result in higher costs, lower competitiveness and lower trade volumes.
The Uruguayan Exporters Union insisted that the negative effects of port operations affect competitiveness in foreign trade, increasing already high costs “up to three or four times more.”
Source: Mercopress
