Around eight out of 10 companies in Latin America and the Caribbean consider that their clients would value the application of practices aligned with the environment and that they could adapt to meet these expectations, according to a survey by the Inter-American Development Bank (IDB).
The result is an improvement compared to 2021 when 69% of respondents agreed with this position. Conversely, 6% of firms believe they do not have the necessary tools to adapt. The main obstacles they point to are investment and financing (56%) and technical capabilities (30%).
More than seven out of 10 companies aim to increase investment linked to their export capacity or keep it stable over the next three years, according to the Survey of Latin American and Caribbean Exporting Firms Decoding the New DNA of Exporters, prepared by the Institute for the Integration of Latin America and the Caribbean (INTAL) of the Integration and Trade Sector of the IDB.
“Exporting firms in the region are interested in incorporating green practices to boost their export projection, which opens up new opportunities for expanding and improving trade and making integration in Latin America and the Caribbean more sustainable,” said Fabrizio Opertti, Manager at the IDB’s Integration and Trade Sector.
Some 564 micro, small, medium, and large enterprises from 23 countries in the region took part in the third round of the survey. Other noteworthy findings include:
- Less assistance from the States. 59% of the companies responded they had not received aid from the government in 2022, a value significantly higher than in 2021 (when only 4% answered that they had not received it due to the context of the pandemic), although in line with what they responded in 2020 (64%).
- The regional market. Around six out of 10 companies said that Latin America and the Caribbean was a destination market for them in 2021, more than in the previous year (49%).
- Moderate expectations. Some 43% of companies believe their exports will grow in 2022, down from 57% in 2021. Conversely, 27% said they expected their exports to fall, 16% thought they would stay the same, and the remaining 13% were unsure how they would evolve.
Although a high percentage of companies in Latin America and the Caribbean (60%) reported having experienced transportation and freight-related problems with their exports when the pandemic began, half managed to solve these in 2021 and 2022.
"These results give us many reasons for optimism, given that companies are overcoming the freight and logistics challenges of recent years and perceive sustainability as an engine of growth in the region," said Ana Basco, Director of INTAL.
About the IDB
The Inter-American Development Bank’s mission is to improve lives. Founded in 1959, the IDB is one of the leading sources of financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also undertakes cutting-edge research projects and provides consultancy services on policies, technical assistance, and training to public and private clients throughout the region. Take our virtual tour.
The Institute for the Integration of Latin America and the Caribbean (INTAL) is part of the Inter-American Development Bank’s Integration and Trade Sector. It was created in 1965 and seeks to promote regional and international integration for countries in Latin America and the Caribbean by generating qualitative and quantitative information, conducting technical analyses, assisting governments, and developing training programs for public officials and the business community in LAC countries. It also seeks to raise awareness around issues that include the scope of Latin American integration and the benefits and challenges this entails.