Argentina: Tumbling imports keep trade balance in surplus in July
August 21, 2019
Exports jumped 8.3% in year-on-year terms in July, following June’s 1.9% increase. July’s outturn was the result of surging exported quantities, while prices continued to fall. The print came on the back of skyrocketing exports of primary goods and a strong rise in sales of manufactured products of agricultural origin. In contrast, exports of fuels and energy, and manufactured products of industrial origin fell. In terms of export markets, overseas shipments to China, Vietnam and the U.S. increased markedly and were partially offset by declining exports to Brazil, Germany and Paraguay.
Imports plunged 20.6% annually in July, slightly less than June’s 23.5% dive. Significant falls in the imports of passenger motor vehicles, fuels and lubricants, and capital and consumption goods, drove July’s downturn.
Meanwhile, the trade balance surplus narrowed from a surplus of USD 1.1 billion in June to USD 951 million in July, the 11th consecutive surplus after 20 months in the red (July 2018: USD 772 million deficit). The 12-month rolling trade balance rose from a USD 6.6 billion surplus in June to a USD 8.4 billion surplus in July (July 2018: USD 10.6 billion shortfall), marking the best result since July 2013.
Author: Javier Colato, Economist