Following improved export prices and after having grown 2.6% in 2023, the Inter-American Development Bank (IDB) estimated that Mexican exports accelerated their pace of expansion to 4% in 2024, driven by mechanical devices, vehicles and their parts.

According to the 2025 edition of the Trade Trends Estimates for Latin America and the Caribbean report , this increase was due to demand from the United States, although Asia, especially Japan, India and Singapore, also contributed.

According to the analysis, coordinated by Paolo Giordano , sales to the remaining destinations contracted. “Mexico continued to be the engine of exports in the region. The growth rate of export values ​​accelerated, driven by better prices, while volumes grew slightly,” the study underlined.

It is explained there that the value of exports to the United States grew by 4.7% , while to Asia, not including China, it was 7 percent.

In the case of Latin America and the Caribbean, the IDB announced that the value of exports expanded 4.1% last year compared to the previous year, after falling 1.6% in 2023.

The analysis stated that this increase was due to the stabilization of export volumes. “After the contraction observed in 2023, some countries began to register signs of improvement between the end of that year and the beginning of 2024. However, the evolution was differentiated at the subregional level,” the organization pointed out.

Despite the improvement, the IDB warned that it sees no signs that guarantee the growth trend will continue, due to the uncertainty that prevails in the global economy.

“The balance of risks for regional trade remains balanced and projections point to limited growth, in a context of high uncertainty regarding the global economy,” it said.

Argentina, Venezuela, Uruguay and Guyana showed an improvement with increases of 18.1% , 18.7% , 14.6% , and 59.6% , respectively. On the other hand, among the countries that showed falls compared to the previous year were Brazil, Paraguay, Costa Rica and especially Panama, with decreases of 0.8% , 6.5% , 9.3% , and 73.3% , respectively.

The IDB report highlighted that the prices of the main commodities exported by Latin America and the Caribbean are on a downward trend, and this is expected to continue in a highly volatile environment.

In this regard, he pointed out that the price of soybeans fell by 22.1% in 2024, mainly due to the increase in global supply. Meanwhile, the price of sugar fell by 13.7% in that year.

Oil prices posted a slight negative trend throughout 2024, accumulating a contraction of 2.7% on average for the year. Iron ore prices fell by 9.2% in 2024 due to the weakness of the construction sector in China , and copper prices showed greater volatility, on average 9.4% above the level observed in 2023.

In 2024, the price of Arabica and Robusta coffee varieties was, on average, 57.7% higher than in 2023, placing the price at historic highs.

Regarding the volume of Latin American exports, the analysis estimated that in 2024 it will increase by 4% year-on-year, “marking an aggregate acceleration compared to the 2.6% average in 2023. The expansion responded mainly to the evolution of the volumes shipped by South American countries, which are estimated to have grown by 6.9 percent .”

The report predicts that looking ahead, trade performance in Latin America and the Caribbean is characterized by moderate growth prospects and high uncertainty.

Real global economic growth is expected to remain stable. However, the impact of the rebound in the region will be limited by the slowdown in China, the low level of activity in Europe and Latin America and weaker external demand compared to previous periods. “Although the region’s exports have overcome the contraction phase, there are still no signs of a sustained recovery,” the analysis detailed.

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Representatives from various financial institutions highlighted the importance of their role in the decarbonization of transport and in the financing of sustainable projects, according to the Sustainable Investments in Clean Transport panel of LATAM Mobility & Net Zero Mexico 2024 .

For Mariuz Calvet, Chief Sustainability Officer at Santander Mexico , most of the environmental impact of these companies does not come from their offices, but from the industries and sectors to which they lend money. She said that this impact leads financial institutions to develop solutions and products that support the transition towards cleaner and more sustainable transport.

The panellists also commented that the main challenge for banks and investment funds is that their carbon footprint is mainly linked to the projects they finance.

“99% of a bank’s environmental footprint is in its investment portfolio, in who it lends money to,” Calvet explained.

This reality forces financial institutions to implement risk strategies that thoroughly evaluate their clients’ activities, especially in sectors that are large emitters of CO2 , such as transportation, energy and mining.

The panellists also explained that the transport sector is one of the largest generators of emissions and is considered a key area for implementing sustainable financing solutions.

Faced with this reality, financial institutions have designed products that allow transport companies to adopt cleaner technologies, with the aim of significantly reducing their emissions.

These products include green loans , sustainable bonds and other financial tools linked to sustainability.

Financial companies are also launching products regulated by global associations that ensure that financing is aligned with internationally recognised sustainability principles, such as green loans that allow companies to access financing on preferential terms if the funds are used to reduce their environmental impact.

For his part, Raúl Rodríguez, Senior Transport Specialist at the IDB, explained that the transport sector presents significant challenges in the transition towards clean technologies. He warned that transport is one of the most difficult sectors to decarbonize , but also one of those that can generate the greatest positive impact if policies and technological solutions are addressed correctly.

“Public and private transport in Latin America is responsible for 40% of CO2 emissions, and it is essential to reduce dependence on private vehicles and promote the use of cleaner and more efficient public transport,” said Rodríguez.

He also explained that a major challenge is that the transition requires not only the adoption of electric or less polluting vehicles , but also comprehensive planning of public transport systems.

Rodríguez stressed the importance of cities focusing not only on electrification, but also on a general reduction of the private vehicle fleet and on improving the efficiency of mobility systems.

Another challenge highlighted by the panel is the fiscal impact of the transition; in many countries, a significant part of tax revenues comes from fossil fuels.

“By reducing the use of these fuels, governments will see a drop in their tax revenues, which represents a risk that must be managed effectively,” said Rodriguez.

Fabiola Gómez, senior programme coordinator at the German bank KFW, also pointed out that it is crucial to include digitalisation and sustainability approaches in mobility projects.

“Digitization allows for better planning and efficient use of resources, which in turn reduces financial risks and maximizes the impact of sustainable projects,” said Gomez.

He also mentioned that cooperation between development and private banks has been key to closing financing gaps in clean transport projects.

The panelists agreed that decarbonization is an ongoing process, and financial institutions have the responsibility to accompany their clients on this path. They assured that with the implementation of appropriate public policies, the transportation sector in Latin America has a great opportunity to advance towards a more sustainable future.

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According to estimates by the Inter-American Development Bank (IDB) in 2019, transportation accounted for 9% of greenhouse gas emissions in Latin America. Of these, 44% were generated by freight transport, which in turn was subdivided into road transport, which accounted for 35%, followed by maritime transport with 6%, while air transport accounted for 3% and rail contributed 1 percent.

Given this scenario and with the aim of formulating strategies to prepare fleets for the future and make the leap towards environmentally friendly vehicles, Fleet Latam Summit 2024 was held, where Angélica Vesga, Director of Public Affairs and Communication at the World Resources Institute (WRI) , explained that in the face of climatic phenomena, whether due to floods or prolonged droughts and their impact not only at a social level, but also at a productive and economic level, it is necessary to have financial and governance systems that promote more sustainable mobility.

He explained that in the Latin American region it is a priority to align investments and policies, both in infrastructure for charging and in city design. He pointed out that it is essential to distribute public resources in transportation, as well as in energy-efficient constructions and new energies.

“While transport is an important part of the problem, it is also part of the solution. It is urgent to break the cycle of inaction, due to the lack of incentives and public policies. It is necessary for the various sectors to commit themselves: private initiative, authorities, public energy generating companies and social organizations,” said Vesga.

For her part, Mónica Mata, Program Manager for Latin America at The Climate Group , indicated that society must pressure governments to implement public policy instruments to adopt more sustainable mobility , and assured that it is necessary to create working groups to achieve the zero emissions goals in Latin America.

In turn, Francisco Cabeza, president of the Mexican Association for the Promotion of Electric Vehicles (AMIVE) , explained that it is difficult to talk about long-term projects in Latin America due to changes in government and the lack of continuity in agendas for the transition to cleaner mobility.

Despite this, Mexico and Brazil are leading the electrification of fleets, but these are mostly concentrated in private fleets. Thus, the challenge is to generate dialogue with all the actors involved in the energy transition of transport.

Cabeza explained that it is necessary to outline economically viable projects and to specify where the adoption of this type of technology makes sense.

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