According to the report, the main reason for the drop in exports in January was the behavior of agriculture that was severely affected by droughts and frost in progress.
INDEC reported this Wednesday that the balance of trade registered a deficit of US$484 million in January, as a result of the fact that exports were for US$4.900 million, while imports amounted to US$384 million.
In January saw a sharp fall of 42.5% in exports of primary products, especially soy and its derivatives.
In the first month of the year, exports fell 11.7%, in what was the steepest contraction since December 2020, when global markets were affected by the pandemic.
The drop in soybean sales, however, was offset by the rise in prices, driven by the heat wave that is impacting Latin America.
For the rest of the year, Abeceb expects a rise in exports from automotive and energy sectorwhich would offset the fall in agriculture.
In relation to the importsthe consultant pointed out that the magnitude of its retraction will depend mainly on the situation regarding Bookings of the Central Bank.
“If he trade balance is weakened by a lower inflow of dollarsthis will be compensated by a grip stronger in the imports -mainly in intermediate and consumer goods, which closed 2022 at relatively high historical levels given the levels of activity,” he pointed out.
In this framework, Abeceb indicated that economic activity that “will remain almost stagnant” -growing around 1% on average during 2023- and, therefore, will demand less purchases from abroad.
The impact of the drought prompted the Government to announce a series of measures to compensate for the losses, particularly to livestock. However, from the agricultural organizations they consider that it was not enough and demand a tax reform, the removal of withholdings, among others.
Source: Ambito
