Peru: Trade deficit shrinks as exports post another double-digit loss
December 11, 2015
In October, the trade balance registered a USD 175 million deficit, which was slightly smaller than the USD 197 million shortfall observed in the same month of last year. October’s deficit was much smaller than the USD 456 million deficit registered in September.
Exports suffered another large drop in October, contracting 12.2% over the same month last year (September: -21.4% year-on-year). Given October’s decline, the result from June marks the only month without a double-digit loss since November of last year. Meanwhile, imports fell 12.1% in October, which followed the 8.0% contraction in September.
In the 12 months up to October, the trade balance posted a record deficit of USD 2.8 billion. The trade balance peaked at a record-high surplus of USD 9.9 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 and gold.
Author: Carl Kelly, Economist