Argentine exports to Brazil top 3rd best result in 9 years

Argentine exports to Brazil reached, in August 2022, the third best result in terms of value in the last nine years. This was also the best August since 2012 to date, up 31% year-on-year, reducing the trade deficit to USD 255 million from the USD 370 million registered in July, reported Ecolatina.

Based on the figures, trade flow returned to the same levels seen in 2013 (USD 2,885 million). Concomitantly, the bilateral trade balance in August showed the second highest monthly deficit of the last 15 months, a significant deterioration in year-on-year terms. In August 2021, it had been USD 116 million.

Argentine sales to Brazil exceeded USD 1,300 million in August and were 28% above the average for the first seven months, driven by vehicles (which grew 41% year-on-year and explained 37% of the total, with operations for almost USD 490 million).

However, Argentina continued to have little weight among its largest trading partner’s imports, and despite improving slightly from July (from 4.2% to 4.7%), they are still below 5%. In contrast, the share of Argentine imports in the Brazilian market averaged 6% in 2019 and 12% in the early 2000s.

In turn, Argentine imports from Brazil grew at a high rate in August (40%, i.a., practically the same as in July), and their year-on-year increase was almost ten p.p. above the rise in exports.

Purchases from Brazil totaled USD 1.57 billion, the second highest value since April 2018 and 24% above the monthly average through July, driven by vehicles and their parts and accessories, which amounted to more than USD 370 million, representing almost a quarter of imports.

Meanwhile, the Abeceb consultancy estimated that “as a result of imports that will continue to grow above exports, the bilateral trade deficit will continue to expand to USD 2.7 billion by the end of the year, a level that is still lower than the historical structural deficit of USD 3.5 billion that prevailed between 2004-2018.”

Therefore, “given the shortage of foreign currency of the Argentine Central Bank and the government’s resistance to increase the exchange rate, greater restrictions on imports are not ruled out in the coming months, which could reduce the annual bilateral deficit,” they added.

Source: Portal Portuario

To read the full original article, please go to: https://portalportuario.cl/argentina-exportaciones-a-brasil-marcan-tercer-valor-mas-alto-de-los-ultimos-9-anos/

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