As in much of the world, 2023 saw a subdued performance from the Latin American label market. High inflation caused a dip in consumer demand, meaning excess stock that accumulated following the previous year’s material shortages took longer than expected to flow through the supply chain.

 

After a strong rebound from the pandemic and continued resilience in early 2023, economic growth in Latin America and the Caribbean slowed from 4.1 percent in 2022 to 2.3 percent in 2023 and is projected to remain at around this rate in 2024, according to the latest Regional Economic Outlook report from the IMF.

 

After reaching 7.8 percent in 2022, headline inflation in the region (excluding Argentina and Venezuela) declined to 5 percent in 2023 and is forecast to fall to 3.6 percent in 2024.

 

While globally, emerging markets and developing economies are projected to have 4.4 percent average growth, Latin America’s GDP is expected to expand annually at about 2.5 percent, similar to its pre-pandemic historical average.

 

“Nearshoring has been key, but there has also been a rebound in the value of the Mexican peso – it is the strongest it has been for many years”.

 

Yet as inflation continues to fall, consumer confidence should return, so suppliers to the region remain cautiously optimistic for improved market conditions in 2024.

 

One bright spot is Mexico. The success of the first Labelexpo Mexico exhibition last year reflected the strong recent growth in that market, in part thanks to nearshoring: the country’s manufacturing sector is thriving as US companies look to shorten their supply chains.

 

‘Mark Andy saw significant growth in Mexico last year. It was our strongest international territory,’ says John Vigna, the press manufacturer’s Latin America sales manager. ‘Nearshoring has been key, but there has also been a rebound in the value of the Mexican peso – it is the strongest it has been for many years.’