Argentina: Trade deficit widens as exports plummet in August
September 27, 2017
In August, export plunged 9.2% in year-on-year terms, contrasting the 5.5% increase observed in July. The plunge in exports reflects a decrease in prices and amount of total goods sold overseas. Primary products reported a steep 28.1% decrease which more than offset a 48.7% increase in sales of fuel and energy products in foreign markets. In dollar, terms, exports reached USD 5.2 billion, below last month’s USD 5.3 billion receipt and August 2016’s USD 5.8 billion.
Growth in imports decelerated from a strong 29.9% increase in July to 24.9% in August. August’s double-digit increase came on the back of an increase in all components of the index except for oil and lubricants. Capital goods, car vehicles and intermediary goods were the three components that increased the most. Brazil, China, the United States and Germany were the markets that imported the most in the surveyed month. In dollar, terms, imports reached USD 6.3 billion, above last month’s USD 6.0 billion receipt and August’s 2016 USD 5.1 billion.
As imports grew and exports contracted, the trade deficit widened from a USD billion 0.8 shortfall to a USD billion 1.1 deficit. August’s print marks the biggest trade deficit since December 2015. In the 12 months up to August, the trade balance posted an accumulated deficit of USD 4.1 billion, which was a deterioration from the USD 2.3 billion deficit recorded in the 12 months till July.