December 7, 2013
Indec inter-annual figuresThursday, August 22, 2013
July surplus shrinks 39.7 percent
Agentina’s trade surplus shrank by 39.7 percent in July from a year earlier, bringing the seven month inter-annual comparison to a 28 percent decline.
Surging fuel and auto imports increasing pressure on the government’s system of currency controls were the main causes of the decline.
July’s trade surplus fell to US$770 million from US$1.277 billion in the same month last year, the INDEC statistics bureau revealed yesterday. The surplus was far below market expectations as the median answer in a Reuters poll foresaw a US$1.1 billion surplus.
Imports rose 11 percent to US$7.1 billion from July last year, boosted by shipments of buses from Brazil, trains from China and diesel oil from Russia and the United States, while exports edged up just two percent to US$7.828 due to plunging oil and gas output and the stagnant agriculture sector.
All import sectors saw hikes, with intermediate goods as the only exception. Purchases of vehicles in general had a noteworthy rise of of 65 percent, most coming from Brazil.
There was a seven percent increase in the acquisition of fuel and lubricants, with gas purchases from the US and Russia and liquefied natural gas from Norway, Portugal and Spain.
The Mercosur trade bloc was registered as Argentina’s main supplier, with 28 percent of imports coming from the region. The Asia-Pacific region was second with 19 percent and the European Union third with 11percent.
The drop last month means that the trade surplus for the first seven months of the year shrank by 28 percent compared to the same period of 2012 — a negative sign for the Fernández de Kirchner administration, which relies on the surplus to boost dollar supplies on the restricted currency market.
The trade balance weighed in at 5.725 US$billion between January and July, compared to the US$7.929 billion registered in the same period last year.
Argentina’s current account, the country’s broadest measure of foreign transactions including trade, profit remittances and interest payments started the year with its deepest quarterly deficit since early 2001.
Herald with Reuters, Télam