Argentina: Export growth continues to soften in May
June 23, 2017
In May, exports expanded a meager 0.8% from the same month last year, which followed April’s revised 1.8% increase (previously reported: +1.7 year-on-year). Exports grew on the back of higher prices, despite a reduction in overall export volumes. As for the different product categories, exports industrial manufactures and fuels and energy grew, more than offsetting a drop in exports of agricultural manufactures and primary products. As for the main export markets, exports to the MERCOSUR countries expanded healthily, while exports to the European Union, NAFTA, China, Chile, Maghreb and Egypt fell. On a monthly basis, exports grew 1.7% in seasonally adjusted terms in May, strongly contrasting the revised 4.4% contraction in April (previously reported: -6.8% year-on-year).
Imports jumped 24.0% annually in May, above April’s 13.8% expansion. The trade balance therefore worsened from a USD 485 million surplus in May 2016 to a USD 642 million deficit in May 2017. In the 12 months up to May, the trade balance posted an accumulated shortfall of USD 0.3 billion, which contrasted the USD 0.9 billion surplus recorded in the 12 months till April.