Significant Growth in Argentina-Brazil Trade in September

Bilateral trade between Argentina and Brazil surged to $2.73 billion in September 2024, reflecting a 27.1% increase from the $2.15 billion recorded in the same month of 2023, according to the latest report by the Argentine Chamber of Commerce and Services (CAC). Compared to August, trade also rose by 16%, driven by an 8.9% increase in exports and a sharp 23% rise in imports.

The chart below was drafted using DataLiner data, a Datamar-original maritime intelligence product. It compares outbound container shipments from Brazil to Argentina between January 2021 and August 2024 to inbound container imports from Argentina heading to Brazilian ports. See more details below.

Brazil-Argentina Container Trade | Jan 2021 – Aug 2024 | TEUs

Source: DataLiner (click here to request a demo)

Argentine exports to Brazil totaled $1.27 billion in September, up 29.2% year-on-year, marking the fourth consecutive month of positive growth. Imports from Brazil reached $1.45 billion, a 25.4% increase from the same period in 2023, resulting in a trade deficit of $182 million for Argentina.

For the first nine months of 2024, the trade deficit for Argentina stood at $56 million. Exports increased by 7.3% compared to the same period in 2023, while imports from Brazil fell by 28.4%.

The year-on-year rise in Argentine exports to Brazil was mainly driven by higher sales of uncrushed wheat and rye, commercial and special-use motor vehicles, passenger vehicles, and motor vehicle parts. Meanwhile, the increase in imports from Brazil was largely attributed to higher purchases of passenger vehicles, commercial motor vehicles, electric power, and road vehicles.

Argentina was Brazil’s third-largest supplier of goods, behind China, Hong Kong, and Macao ($5.78 billion) and the United States ($3.81 billion). Argentina also ranked third among Brazil’s top buyers, trailing China, Hong Kong, and Macao ($7.56 billion) and the United States ($3.26 billion).

Brazil’s global exports saw a modest increase of 0.3% in September, reaching $28.79 billion compared to $28.71 billion in the same month last year. Imports, however, surged by 19.9%, rising from $19.53 billion in 2023 to $23.43 billion this year. Brazil recorded a trade surplus of $5.36 billion in September 2024, marking the 32nd consecutive month of positive trade balance, though lower than the $9.18 billion surplus seen in September 2023.

Additionally, market expectations gathered by the Central Bank of Brazil in September indicated a forecasted GDP growth of 3.0% for 2024, up from the previous estimate of 2.68%. Inflation expectations rose to 4.38% from 4.30% the previous month, and the benchmark Selic interest rate is projected to reach 11.75%, above the current rate of 10.75%.

Source: Cámara Argentina de Comercio y Servicios (CAC)

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