Argentina records eighth consecutive monthly trade deficit with Brazil

In August 2023, bilateral trade between Argentina and Brazil registered a deficit of $292 million, marking the eighth consecutive month of a negative balance for Argentina. According to the latest report from the Argentine Chamber of Commerce and Services (CAC), bilateral trade totaled $2.571 billion in August and accumulated a deficit of $4.475 billion for the year.

In August, bilateral trade with Brazil decreased by 10.7% compared to the same period in 2022, when it reached $2.877 billion. Additionally, there was a 1.2% drop compared to July, driven by a 10.6% decrease in imports despite a 14% increase in exports.

Argentine exports to Brazil fell by 13.3% in August 2023 compared to the same month in 2022, totaling $1.139 billion. On the other hand, imports from the neighboring country amounted to $1.431 billion, presenting a year-on-year decrease of 8.4%.

Consequently, Argentina’s trade balance recorded a deficit of $292 million for the eighth consecutive month.

In the first eight months of the year, trade between the two countries resulted in a negative balance of $4.475 billion for Argentina. It’s worth noting that exports decreased by 5% from January to August 2023 compared to the same period in 2022, while Brazilian imports increased by 20.4% during the same period.

Trade Partner

Brazil, the largest country in South America, is Argentina’s primary trade partner, a relationship that has historically experienced deficits due to the strategic importance of Brazilian imports for Argentine production.

The year-on-year drop in Argentine exports to Brazil in August (13.3%) was mainly due to reduced exports of motor vehicles for transporting goods, piston engines, unprocessed wheat, and rye. The year-on-year decrease in Argentine imports (8.4%) was primarily due to reduced imports of passenger motor vehicles and electric power.

In the ranking of Brazil’s largest suppliers, Argentina held the fourth position, behind China, Hong Kong, and Macau ($5.021 billion), the United States ($3.208 billion), and Germany ($1.239 billion). Among Brazil’s main buyers, Argentina ranked third, behind China, Hong Kong, and Macau ($9.343 billion) and the United States ($3.369 billion).

Brazilian Performance

Brazilian exports to the world increased by 1.4% in August 2023 compared to the same month in 2022, rising from $30.787 billion to $31.210 billion. On the other hand, total imports decreased by 19.6% compared to the previous year, from $26.680 billion in 2022 to $21.444 billion this year.

Consequently, Brazil’s trade result was a surplus for the nineteenth consecutive month, totaling $9.767 billion, a situation similar to that observed in August 2022 when the balance was positive at $4.106 billion.

Market expectations surveyed by the Central Bank of Brazil in August showed an increase compared to the previous month in terms of growth estimates for 2023 (2.56% versus 2.26%).

Source: Ámbito

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