Peru: Exports suffer again and trade balance registers record deficit
June 9, 2014
In April, the trade balance registered a record deficit of USD 861 million, which was considerably greater than the USD 325 million deficit observed in the same month last year. April’s result was more than three times March’s deficit of USD 265 million. In the 12 months up to April, the trade balance posted an all-time record deficit of USD 1.3 billion.
Exports contracted 15.0% over the same month last year in April (March: -14.7% year-on-year), while imports increased 1.6%, which was down from March’s 2.7% expansion.
A downward trend in the trade balance has been recorded in the last two years amid falling international prices for traditional Peruvian exports, such as copper and natural gas. Similarly, the increase in import volumes has also been affecting the trade balance negatively despite lower international prices.
Author: Carl Kelly, Economist