WorldCity Business Magazine

(3-a) Miami TradeNumbers 2007: 1st Half Exports - Export Bonanza

by WC

Robust economies and strong currencies in Latin America are driving Miamis export boom

In the first half of the year, South Florida exports grew by nearly 13 percent to $21.5 billion, $2 billion ahead of the same period last year.

At the current pace, South Floridas annual export trade is likely to top $40 billion in 2007 for the first time. Fourteen of South Floridas top 20 export markets registered double-digit
growth from January to June.

Brazil, already Miamis biggest export destination, expanded by more than 20 percent, as did shipments to Panama, Ecuador, Paraguay and Germany. Export growth to two other markets Peru and Argentina came in just under 20 percent.

South Floridas export bonanza (in 2006, exports were up 16 percent) is easily explained healthy and fast-growing economies across the region coupled with many Latin American currencies that have strengthened against the U.S. dollar.

So far this year, Panama is the star performer in percentage terms, with exports to that market leaping nearly 37 percent. South Florida shippers sent $536 million worth of merchandise to the tiny country of only 3 million population, compared to just $392 million during the same period a
year ago.

As a result, Panama jumped to the 14th spot among Miamis top export destinations, up from 17th in the first half of 2006.

Panama is the fastest-growing economy in the hemisphere. GDP growth has averaged 8 percent the past four years and, according to the countrys vice president and foreign minister, Samuel Lewis Navarro, who visited Miami in late July, is expected to grow by 10 percent in 2007.

At the top of the leader-board, among South Floridas largest export markets, Brazil further consolidated its No. 1 position with exports to the South American giant leaping $674 million in the first half of the year to just over $3.8 billion. Venezuela and Colombia hung on to the second and third spots among Miamis most important export destinations.

Shipments to Venezuela were up nearly 18 percent to $2.1 billion in the six-month period, while exports to Colombia increased nearly 16 percent to $1.4 billion.

Among the top five export markets, the only change was the Dominican Republic which leapfrogged Costa Rica to take over fourth spot. Exports to the D.R. were up 12.5 percent to nearly $1.3 billion during the first half of 2007, while shipments to Costa Rica, which has yet to ratify the DR-CAFTA trade agreement, slipped nearly 12 percent to just over $1.1 billion.

Computers and computer parts continued to be the most important export categories, together accounting for more $2.7 billion, or more than 12 percent of total exports.

Landline phone equipment jumped from 10th spot to third among top export products, accounting for just over $1 billion from January to June, up nearly 200 percent from $350 million a year earlier.

The biggest export surge, however, occurred in the printing machinery and ink-jet printer category. These products registered a 10-fold increase in the first half of this year, accounting for $377 million, good enough for 10th spot on the export product ranking.