Peru: Exports drop again and trade balance registers fourth consecutive deficit in June
August 8, 2014
In June, the trade balance registered a deficit of USD 370 million, which contrasted the USD 72 million surplus observed in the same month last year. June’s result followed the USD 566 million deficit registered in May and marked the fourth consecutive negative monthly balance. In the 12 months up to June, the trade balance posted an all-time record deficit of USD 1.8 billion.
Exports continued to suffer in June, contracting 11.6% over the same month last year (May: -16.7% year-on-year). Meanwhile, imports increased 1.9% in June, which contrasted May’s 7.7% contraction and marked the highest gain in three months.
A downward trend in the trade balance has been observed over the past two years amid falling international prices for traditional Peruvian exports, such as copper, silver and natural gas. Similarly, the increase in import volumes has also affected the trade balance negatively despite lower international prices.
Author: Carl Kelly, Economist