Peru: Exports fall again and trade balance registers ninth consecutive deficit in November
January 9, 2015
In November, the trade balance registered a USD 253 million deficit, which was much larger than the USD 22.5 million shortfall observed in the same month of the previous year. November’s result was somewhat smaller than the USD 296 million deficit registered in October but marked the ninth consecutive negative monthly balance.
Exports suffered another large drop in November, contracting 10.9% over the same month of the previous year (October: -9.2% year-on-year). Meanwhile, imports decreased 4.0% in November, which was an improvement from the 5.8% decline tallied in October.
In the 12 months up to November, 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 almost 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