Guyana, Suriname drive Caribbean export growth as regional trade surges 19.5% – IDB

…says opening opportunities to attract more foreign investment

Latin America and the Caribbean recorded a 19.5 per cent increase in goods exports during the first half of 2026, with Guyana and Suriname accounting for much of the growth in the Caribbean, according to a new report by the Inter-American Development Bank (IDB).
The increase outpaced the 14.5 per cent growth in global trade over the same period, reflecting higher prices for oil and other commodities, as well as increased demand for infrastructure equipment associated with artificial intelligence (AI).
The findings were published in the IDB’s Trade and Integration Monitor 2026, which highlighted the region’s export performance despite an uncertain global economic environment.
According to the report, the growth was driven mainly by higher export volumes, although rising commodity prices also contributed.
Mexico recorded the strongest growth among the region’s major economies, with exports increasing by 24.6 per cent, largely due to sales of AI infrastructure equipment to the United States.
The Caribbean recorded 19.1 per cent growth, with Guyana and Suriname accounting for much of the increase. South America also recorded a 16.5 per cent expansion, driven largely by higher prices for mining and energy products, particularly oil.
The IDB said the region’s strong export performance presents an opportunity to attract increased foreign investment but stressed that countries must strengthen their domestic regulatory frameworks to provide greater certainty for investors.
“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.
The report also found that Latin America and the Caribbean increased its share of the United States import market to a record 22.1 per cent during the first half of 2026, even as US purchases from the rest of the world declined.
The region also regained market share in Europe, further strengthening its presence in major international markets.
However, the IDB cautioned that the increase in exports has not been matched by growth in foreign direct investment (FDI).
Although Latin America and the Caribbean continue to attract more foreign direct investment relative to the size of their economy than any other region, they received 4.5 per cent less investment during 2023 to 2025 than they did between 2012 and 2014.
Its share of the global FDI stock also declined from 7.1 per cent to six per cent, pointing to the need for countries to do more to attract and retain international investors.
The report identified regulatory arrangements, including double taxation treaties, bilateral investment treaties, and trade agreements containing investment provisions, as important tools for strengthening investment links between countries.
It noted that these arrangements are associated with a greater likelihood of investment ties, as they help establish clearer conditions for businesses operating across borders.
The IDB further identified developments in international trade, including the provisional application of the EU-Mercosur trade agreement, the modernisation of existing trade agreements and changes in global supply chains driven by artificial intelligence and the energy transition, as opportunities for the region.
It argued that countries must complement their external trade strategies with reforms to domestic regulations and investment in public goods that reduce the costs businesses face when expanding into international markets.

Source: Guyana Times