Peru: Trade balance swings back to deficit in June
August 5, 2016
In June, the trade balance recorded a USD 278 deficit million deficit, which was a deterioration over the USD 92.8 million deficit recorded in the same month last year. The trade balance swung into deficit from the revised surplus of USD 56.6 million registered in May (previously reported: USD 65.3 million surplus).
The Central Bank reported that exports had decreased 18.7% annually in June (May: +6.0% year-on-year), which represented the fastest annual decrease in nine months. Contractions in all categories were behind June’s drop. Meanwhile, imports fell 12.6% in June, which was below May’s 8.5% drop.
In the 12 months up to June, the trade balance posted a deficit of USD 1.8 billion. This was wider than the USD 1.6 billion deficit seen in the 12 months up to May. This year started with a record deficit of USD 3.2 billion in January, but strong growth in exports of traditional Peruvian goods, such as minerals and fossil fuels, was the main driver behind five consecutive months of moderation in the deficit. That said, June marked the first reversal of this upward trend.