The drop in goods exports due to the impact of the drought was one of the main reasons for the increase.
He Central Bank of Uruguay (BCU) specified that the deficit in current account of the Balance of payments reached 3.7% of GDP during the year ended June, which represents a year-on-year increase of 0.8%, reaching 811 million dollars during the second quarter, a figure vastly higher than the 423 million dollars in the same period of the previous year.
This increase was mainly driven by the fall in exports of goods, in the order of 16.8%, a phenomenon explained by the impact of the drought and the lowest prices internationally. At the same time, the report of the BCU highlighted the improvement in the placements of services, which experienced a year-on-year increase of 16%.
In the report of BCU, The focus was mainly on the 27.2% decline in exports of General Merchandise during the second quarter, due to the drop in soybeans and meat and, to a lesser extent, vehicles and auto parts, electric energy and forestry products.
The impact of the decline in trade with China and at the regional level
This decrease was influenced by placements towards China, which despite being the main destination country, fell 10% in that period, mainly due to the performance of soy and meat.
Despite the increase in exports to Brazil, especially dairy products and wheat, exports to the region showed a contraction, mainly due to the decline in sales towards Argentina.
The technology sector and tourism registered increases
On the other hand, the report of the Balance of payments reflected that the exports of services increased 16% year-on-year in the second quarter, with sales of 1,436 million dollars. Of that total, 172 million are associated with telecommunications, computing and other business services and financial services.
At the same time, the increase in placements in the category stood out. trips, which totaled 363 million dollars and reached levels slightly higher than those observed in the period prior to the pandemic.
At the same time, he highlighted that in that period more than 750 thousand tourists entered the country, 46% more than in the same period last year, while the entry of Argentines suffered a 7% decrease, partially offset by the increase in the number of Uruguayans non-residents who entered the country, which increased 82% compared to the pre-pandemic.
Source: Ambito
