Peru: Exports fall again and trade balance registers eighth consecutive deficit in October
December 5, 2014
In October, the trade balance registered a USD 316 million deficit, which was much larger than the USD 185 million shortfall observed in the same month last year. October’s result was more than double the USD 145 million deficit registered in September and marked the eighth consecutive negative monthly balance.
Exports suffered another large drop in October, contracting 9.6% over the same month last year (September: -11.0% year-on-year). Meanwhile, imports decreased 5.7% in October, which followed the 1.2% decline tallied in September.
In the 12 months up to October, the trade balance posted an all-time record deficit of USD 2.1 billion. The trade balance peaked at a record-high surplus of USD 9.8 billion in February 2012. It has narrowed uninterruptedly since then and shifted to deficit in December 2013. This trend has been driven by falling global demand and decreasing prices for traditional Peruvian exports, such as copper, silver and natural gas. The increase in import volumes has also affected the trade balance negatively.
Author: Carl Kelly, Economist