The trade balance with Brazil again threw an important deficit in September, explained fundamentally by the sustained negative result in the automotive sector. The lean export dynamics does not allow to enhance a reversal of the balance in the coming months.
According to official data from the Brazilian Ministry of Economy, in the ninth month of the year the bilateral “red” for Argentina was from U $ S578 million. In the same period last year a deficit of just US $ 7 million had been observed.
On the export side, the data exhibited an interannual drop of 2.8%to US $ 1,236 million. The bulk of this deterioration was explained by a 45% collapse in sales of passenger transport cars.
Agro and agribusiness cushioned the decline, since wheat shipments grew 51.7%, while also milk improvements were also seen.
Imports from Brazil mark a record since 2010
Meanwhile, Imports increased 24.7% Regarding September 2024, to US $ 1,814 million. The most relevant item within purchases, which is from passenger vehicles, had an annual leap of 43.5%. Similar was the increase in vehicles for merchandise transport (+48.7%).
Anyway, the most extraordinary increase was verified in road vehicles (+131.9%). In addition, the risks in auto parts and electrical energy were also relevant.
With these numbersthe bilateral deficit with the neighboring country so far from 2025 amounted to $ S4.696 million. While exports exhibited a 1.7% decrease in the accumulated, compared to 2024, imports climbed 45.8%, which puts it as the nine-month period with the highest import growth in 15 years (excluding post-pandemic)according to the Abeceb consultancy in a report.
Commercial deficit with Brazil: the perspectives do not improve for what remains of the year
In the face of what is left of the year, Abeceb predicted that “with ironed exports it is not expected to revert the deficit dynamics that the bilateral balance has been showing, at least substantially.” In that framework, They foresee a negative result close to US $ 6,000 million throughout 2025.
The entity sees some factors that could moderate the deficit, such as improvement in the real bilateral exchange rate or stagnation in domestic economic activity. Otherwise would generate moderation in the economic growth of Brazil.
In parallel, it is worth adding the growing penetration of Chinese cars in the Brazilian market, which harms the local industry. This happens not only in the segment of electric vehicles but also in the conventional ones.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
