The trade balance marked a historic deficit in June of US$ 1,727 million

2023-07-19 22:28:00

The balance of trade registered a historical negative balance of US$ 1,727 million in June explained by a collapse of exports of 35.4% and imports of 17.2%, according to the National Institute of Statistics and Censuses (INDEC).

So far this year, sales of Argentine products abroad showed a drop of 24.5% while the entry of goods from abroad marked a decrease of 8.5%. This way, the accumulated deficit for the first semester was US$ 4,387 million.

Basic food basket: a family needed $232,427 in June to avoid being poor

Trade balance in red: sharp drop in exports

In the sixth month of the year, exports reached US$ 5.450 million y imports US$ 7,177 million. “Commercial exchange (exports plus imports) decreased 26.1% in relation to the same month of the previous year, and reached an amount of US$ 12,627 million,” detailed INDEC.

At the same time, the statistical entity determined that the red of the scale reflects “the highest historical value and the fifth negative record of the first half of the year” which is largely explained by a 24.8% drop in quantities and a 14.0% drop in prices.

The official report shows that all the items included in the export measurement decreased: fuels and energy (C&E), 37.7% (-US$ 296 million); primary products (PP), 36.7% (-US$747 million); manufactures of agricultural origin (MOA), 36.1% (-US$1,246 million); and manufactures of industrial origin (MOI), 32.1% (-US$ 694) million.

The effect of the drought was felt in the trade imbalance

Once once more, the effects of drought they were felt strongly in declines in exports. Official and private estimates agree that more than US20 billion were lost during the current year due to inclement weather.

Indeed, the PP category plummeted 40.6% during the first semester compared to the same period in 2022. The subcategory Cereals showed a decrease of 51.8% in semiannual interannual terms and 39.4% between June 2023 and the same month last year.

Argentine commercial exchange 20230719

Trade balance deficit: how imports behaved

The body chaired by Marco Lavagna communicated a year-on-year drop in imports of US$ 1,487 million. The segment that fell the most was CyL, with a negative variation of 50.0% (-US$1,035 million) due to a 41.9% drop in quantities and a 13.0% drop in prices.

Capital goods (BK) fell 5.9% (-US$ 176 million), due to a 3.5% decrease in quantities, and a 2.7% decrease in prices. Intermediate products (BI) presented a decrease of 8.4% (-US$ 264 million), as a consequence of a 6.5% decrease in prices, and a 2.5% decrease in quantities. As for consumer goods (BC), they fell 7.6% (-US$55 million), due to a 5.4% drop in prices, and a 2.3% drop in quantities.

The only two categories that recorded positive variations were Parts and accessories for capital goods (PyA) and Passenger motor vehicles (VA). The first rose 2.0% (US$27 million) and the second grew 15.2% ($29 million).

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