Thursday , November 26 2020

The trade balance again showed surplus

Argentina's imports dropped 18.2 percent to reach $ 5,077 million in October, according to the National Institute of Statistics and Census (INDEC), while exports grew by 1.4 percent to $ 5.354 billion. positive trade balance of US $ 277 million during the tenth month of the year.

The Radar advisory service states that "as historically happens during Argentina's devaluatorios episodes, the adjustment of external accounts is linked, at least in the short term, to the fall of imports as a result of lower economic activity , the acceleration of inflation, exports, for various reasons, react slowly to the new exchange rate. "

The most important surpluses in October correspond to trade with Chile, which is 221 million dollars; Vietnam – 177 million dollars, Algeria – 92 million dollars, Bangladesh – 87 million dollars, Peru – 86 million dollars, Indonesia – 84 million dollars.

The most significant deficits in October were registered with China, the US, $ 321 million, the US, $ 321 million; and Brazil $ 110 million, Indec said.

This month, exports of primary products reached 1.114 million cubic meters, with a drop of 3.2 percent due to a decline of 5.8 percent in sales, which can not be offset by an increase of 2.8 percent. in prices.

Meanwhile, sales of agricultural producers increased by 4.4% yoy, to $ 2.027 million, with growth of 3.5% in quantities and 0.9% higher than in October last year.

Industrial products of industrial origin (IOM) amounted to 1,824 million SD, 3.4% less than the same month of 2017, 6.9% lower, although the quantities were increased by 3.6%.

Meanwhile, "fuel and energy" sold 389 million dollars, with an increase of 25.8% in prices and an increase of 4% in the amounts.

Meanwhile, in the midst of the appreciation of the dollar and the slowdown in the industrial sector in September, imports show a decline in all positions, with 12.9% in capital goods, 38% in parts and accessories of capital goods, 46.9% in transport funds, 12.8% in consumer goods.

"This is a sign that the investment is the component of aggregate demand, which registers a larger reduction that compromises long-term economic growth capacity," stresses radar.

They also pointed out that the prospect is "to improve the external result as a result of the economic recession that the economy is going through and the consequent fall of imports". The year will end with a deficit of nearly $ 4,000 million. the surplus may exceed USD 3 000 million as a consequence of the continuing decline in imports and the strong increase in agricultural exports as it will be compared to the year on land. "

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