Peru: Trade balance swings to small surplus
August 7, 2015
In June, the trade balance registered a USD 29 million surplus, which contrasted the USD 59 million shortfall observed in the same month of last year. June’s surplus contrasted the USD 262 million shortfall registered in May even more than last year’s result and marked the first positive balance since August of last year.
Exports suffered another drop in May, contracting 4.2% over the same month last year (May: -16.0% year-on-year). June’s decline marks the smallest contraction after sixth consecutive double-digit losses. Meanwhile, imports fell 6.8% in June, which was less pronounced than the 18.5% contraction in May.
In the 12 months up to June, the trade balance posted a deficit of USD 2.2 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.
Author: Carl Kelly, Economist