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The decline in exports continues

The decline in exports continues

Sales of goods abroad Uruguay In September they totaled 938 million dollars, a figure 9% lower than that registered in the same month last year, as reported today Uruguay XXI. In the accumulated of the year, the exports They total 8,519 million dollars, a figure 18% lower than that of the same period in 2022.

Decreases in the prices of several products, associated with a decline in demand for China and a scenario of the main global economies that is not favorable, are the main explanations for this export behavior, to which is added the effect of the harsh drought last summer, which collapsed – among others – the production of soyone of the main products sold abroad.

In such a way that an item like rice —traditional in the Uruguayan export sector, particularly important in the east and northeast— today surpasses soybeans in the accumulated amount exported. Contrary to what happens in other grains, the rice sector has a good commercial scenario, firm prices and with the entire last harvest practically sold.

But it is an exception that confirms the rule: in the main items (the aforementioned soybeans, beef and also the cellulose), prices are falling. The main concern is China, an economy that is showing difficulties with a currency that is devaluing against the US dollar, although recent data gives somewhat more peace of mind.

The strengthening of dollar is also a factor in itself, affecting global dynamics: the perspective that USA maintain a high interest rate for a longer time than expected, it is strengthening its currency and this puts pressure on international prices in dollars of a good part of the products that are sold globally.

With this scenario, Brazil has once again been the main destination of the exports Uruguayans in September and this situation has been going on for several months now. In the accumulated annual data, China continues to be the main market, but if the situation continues like this, the annual data will surely see Brazil and China fighting for first place as a destination in a scenario of exports in down.

In general, the exports continue to be led by agribusiness, where dairy products are added to the aforementioned meat, cellulose and grains, which maintain good levels of exports, although in the accumulated figure there is a drop of 7%. For this area, Brazil is the key destination. They also show resilience exports of vehicles, which had a good performance in September, despite the fact that in the accumulated annual they are with a drop of 5%.

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Goods and services

To evaluate the commercial performance of the Uruguay We must also include the exported services and, obviously, also what the dynamics of imports are. The attached table shares the recent data released by the Central Bank of Uruguay (BCU)corresponding to the Current Account of the Balance of Payments.

There you can see that the balance in goods went negative this year, as explained above. In services, on the other hand, the balance is positive and greater than in 2022, when the pandemic was still affecting the season. In the accumulated of both sectors, the balance of trade It is almost in balance.

Source: Ambito

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