Argentina: Plunging imports keep trade balance in surplus
Exports increased 1.9% in year-on-year terms in June, following May’s 16.5% jump. June’s uptick was the result of soaring exported quantities, while prices continued to fall. It came on the back of skyrocketing exports of fuels and energy products, and of a notable expansion in foreign sales of manufactured products of agricultural origin. On the other hand, exports of manufactured products of industrial origin continued to fall. In terms of export markets, overseas sales to China, Vietnam and the India rose considerably and were only partially counterbalanced by dropping exports to Brazil, the U.S. and Chile.
Imports dived 23.5% annually in June, a somewhat softer fall than May’s 28.0% plunge. Heavy falls in the imports of passenger motor vehicles, fuels and lubricants, and capital and consumption goods, led June’s contraction.
Meanwhile, the trade balance surplus narrowed from a USD 1.4 billion surplus in May to a USD 1.1 billion surplus in June, the 10th consecutive surplus after 20 months in the red (June 2018: USD 0.3 billion deficit). The 12-month rolling trade balance rose from a USD 5.2 billion surplus in May to a USD 6.6 billion surplus in June (June 2018: USD 10.6 billion shortfall), marking the best result since July 2013.