This way, the largest monthly bilateral trade deficit of the last 56 months (since June 2018) was reached; which, given the delicate situation in terms of BCRA reserves, turns on yellow lights ahead – and augurs a greater adjustment to imports. The aforementioned deficit was a consequence of imports and exports -from and to Brazil- that reached US$1,317 M and US$944 M, respectively.
What happened to imports from Brazil in February?
Imports grew 27.5% yoy more than double the +11.7% yoy seen in January- and reached US$1.317M in February.
Within it, all the products with the highest share of total imports showed positive figures (with the exception of “Iron ore and concentrates” -the fifth most imported product from Brazil in February-, whose imports fell 18.3% yoy). Namely:
– Imports of “Passenger vehicles” and “Parts and accessories for motor vehicles” grew 67.8% yoy and 45.7% yoy, respectively.
– As in January, the purchase of “Tubes, hollow profiles and pipe accessories, of iron or steel” recorded notable growth -it went from u$s1.8 M in February 2022 to u$s47.6 M last last month year-; and represented 3.6% of total imports from Brazil.
– o Lastly, imports of “Piston engines and their parts” reached US$36.6 M in February (+40.9% yoy).
What happened to exports to Brazil in February?
Exports grew 19.2% yoy in February and reached US$944 M. In this way, they showed a significant acceleration in the rate of growth (it should be remembered that in January they increased a meager 3.4% yoy; and in the last quarter of 2022 fell 11% yoy).
As in the case of imports, all the products with the highest participation in total exports showed positive figures -with the exception of “Wheat and rye, unground”-. For example:
– In relation to the automotive sector, the export of “Passenger vehicles” and “Motor vehicles for the transport of merchandise and special uses” increased by 19.3% yoy and 14.2% yoy, respectively. Both products accounted for 27.0% of the total shipments to Brazil in February, in line with January and the values for 2022 (it should be noted that they were the main export products last year, accounting for just over 1/3 of the total exports to the neighboring country).
– o On the other hand, the export of “Petroleum or bituminous mineral oils, crude” and “Preparations of cereals, flour or fruit or vegetable starch” showed year-on-year increases of over 200%, although in both cases could be explained by the low base of comparison.
– Lastly, the only one of the products with the highest participation in the total whose export contracted in annual terms was “Wheat and rye, unground” -as in January-, falling a notable 25.6% in relation to February of 2022. This fall is explained by the lower national production as a consequence of the droughts and frosts that continue to haunt agriculture in Argentina.
Source: Ambito
