Peru: Exports tumble again and trade deficit widens further in April
June 5, 2015
In April, the trade balance registered a USD 647 million deficit, which was larger than the USD 461 million shortfall observed in the same month of last year. April’s deficit was also wider than the USD 556 million shortfall registered in March.
Exports suffered another staggering decline in April, contracting 24.5% over the same month last year (March: -18.9% year-on-year). April’s contraction marks the fifth consecutive double-digit decline. Meanwhile, imports fell 16.2% in April, which followed the 4.6% contraction in March.
In the 12 months up to March, the trade balance posted a deficit of USD 2.4 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 April 2014. 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