Peru: Exports plunge in March driving trade balance to register large deficit
May 20, 2014
In March, the trade balance registered a USD 490 million deficit, which contrasted the USD 360 million surplus observed in the same month last year. March's result also contrasted the USD 174 million surplus observed in February. In the 12 months up to March, the trade balance posted an all-time record deficit of USD 1.0 billion. Exports contracted 20.9% over the same month of last year (February: -1.9% year-on-year). Imports increased 2.7% in March, which contrasted February's 6.8% drop. A downward trend in the trade balance has been recorded in the last two years as low international prices for traditional Peruvian exports, such as copper and natural gas, more than offset the higher volumes exported. Similarly, the increase in import volumes has also been negatively affecting the trade balance, despite lower international prices.
Author: Carl Kelly, Economist