Argentina: Trade deficit worsens in July as exports rise but are outpaced by imports
August 24, 2017
In July, exports climbed 5.2% from the same month last year, contrasting June’s 2.9% fall. July’s reading was supported by strong performances in the exports of industrial goods, agricultural manufactures, and fuel and energy, which were more than enough to offset a fall in the exports of primary products.
As for the export markets which notably contributed to July’s climb, exports to the European Union rose 18.3%. Meanwhile, exports to China, which are heavily concentrated in soy beans, fell.
On a monthly basis, exports rose 4.9% in seasonally-adjusted terms in July, contrasting June’s 4.6% decline.
Imports jumped an impressive 29.9% from the same month last year, up from June’s 15.4% expansion. Imports of passenger motor vehicles and industrial transport equipment fueled this acceleration. The trade balance therefore swung from a USD 331 million surplus in July 2016 to a USD 798 million deficit in July 2017. In the 12 months leading up to July, the trade balance posted an accumulated shortfall of USD 2.3 billion, below the USD 1.2 billion deficit recorded in the 12 months up to June.
Author: Edward Gardner, Economist