Trade surplus jumped to $2,656 million in May due to the collapse of imports and improvement in exports

Trade surplus jumped to ,656 million in May due to the collapse of imports and improvement in exports
Trade surplus jumped to ,656 million in May due to the collapse of imports and improvement in exports

In May The trade surplus grew to $2,656 million, the highest monthly figure since records began.. The balance was achieved both by a collapse in imports and by an improvement in exports.

During the fifth month of the year, Purchases abroad totaled about US$4,966 millionwhich involved a collapse of 32.8% (-US$2,420 million) compared to the same month last year.

The most significant falls were seen in intermediate goods and energygenerating savings of US$1,363 million compared to May 2023.

Within these two categories, the imports that decreased the most in interannual terms were those of Liquefied Natural Gas (LNG) and those of soy beans. It is worth remembering that the latter had grown in 2023 as a consequence of the serious drought that affected local production of cereals and oilseeds.

Parallel, External sales rose 21.7% annually (+US$1,360 million) and reached US$7,622 millionthe highest number since October 2022.

Between soybeans (and their derivatives), corn, wheat, oil and gold They generated additional exports of more than US$1,120 million in relation to the previous year, which reflects the importance of primary products in the performance described.

From these values, In the first five months of 2024, the country accumulated a positive trade balance of US$8,812 million, when in the same period of 2023 a deficit of US$2,660 million had been observed.

On the import side, an accumulated annual saving of US$7,975 millionexplained mainly by the reductions in energy products, such as diesel, LNG, electric energy, gasoline and fuel oil, and in intermediate goods such as soybeans, cell phone parts and seamless steel tubes (which had been used for the construction of the gas pipeline Néstor Kirchner last year).

Regarding exports, the increase in annual terms was equivalent to about US$3,497 million with wheat and soybeans being the products that improved the most after the collapse they had suffered due to the drought.

The recovery in exported quantities could offset a 8% drop in the prices of the products that Argentina sells to the world. In parallel, the drop in imports responded to both a decline in prices and an even greater decline in quantities, within the framework of the worst economic crisis since 2002 and bureaucratic obstacles that companies encounter when bringing inputs from abroad.

So far this year, Brazil and China have remained the two main trading partners despite the attacks carried out by officials of Javier Milei’s government on the heads of state of those two nations. Third place was occupied by the United States, a country with which Argentina is most aligned in ideological terms at the moment.

In terms of variations, the increases in sales of primary products to Asian countries, mainly Vietnam, and fuels to Chile stood out.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts