Peru: Trade deficit widens as exports post another double-digit loss
November 9, 2015
In September, the trade balance registered a USD 502 million deficit, which was significantly larger than the USD 3.8 million shortfall observed in the same month of last year. September’s deficit was also greater than the USD 181 million deficit registered in August.
Exports suffered another massive drop in September, contracting 23.0% over the same month last year (August: -18.6% year-on-year). September’s decline was the largest in five months and the result from June marks the only month without a double-digit loss since November of last year. Meanwhile, imports fell 8.2% in September, which followed the 11.6% contraction in August.
In the 12 months up to August, the trade balance posted a record deficit of USD 2.9 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