As Argentine economy picks up, imports soar and trade surplus is down
Argentina's trade surplus narrowed by 19% in June from the same month a year ago, falling short of market expectations as brisk economic growth fuelled demand for imports, according to official data released last week.
The government said the surplus narrowed to 1.29 billion USD, down from 1.59 billion in June 2009, when the impact of the global economic slowdown sapped demand for imported goods. The median outlook of a poll of seven analysts was for a surplus of 1.53 billion, a decline of 4%.
Argentina’s national statistics agency INDEC said exports rose 22% while imports surged by 40%, driven by increased demand for fertilizer, iron-ore and car parts.
Analysts have said the rebound in factory activity and consumer demand is lifting imports. In May, the trade surplus slimmed 25% to 1.91 billion USD.
“Imports are starting to recover as the economy is peaking and, therefore, it is starting to cut into the trade surplus, but imports are still regaining levels seen previous to the global crisis” a research group said in a briefing note.
In the first half of the year the trade surplus totalled 7.49 billion USD, down from the 10.1 billion USD posted in the same period last year.
In related news President Cristina Fernández de Kirchner announced another Central Bank record of international reserves, and confirmed her administration’s policy of cutting government debt.
“Today we have 51.008 billion US dollars in reserves and we broke another one of our own records. It fills us with pride. We are going to be able to pay the Boden 12, which will not be swapped but paid for, because the plan is to continue to get out of debt. This is a good path”.
International reserves of the Argentine Central Bank (BCRA) broke a new record as they reached 51.008 billion, after increasing 22 million regarding last Friday, when it had reached 50.986 billion.
The Argentine government ruled out the possibility of swapping Boden 2012 bonds -which expire in August-, in order to obtain financial oxygen, and it assured that it is to pay 2.3 billion when due, with BCRA reserves.
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11 comments Feed
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too bad we couldn't get China on board, but with soy demand going through the roof maybe next year we can lock in better prices, who knows they can always change their minds, this would be a bad sign since the cattle industry in both Barazil and Argentina are losing ground to the soy fields, We have to wait and see what happens to the Brazil's soy king fiasco.
“While the investigation focused on activities in the state of Mato Grosso, which is located in the southern Amazon and is one of the most deforested regions largely due to clearing land for expanding soya farms, it touched numerous others, including São Paulo, Paraná, Rio Grande do Sul, Espirito Santo, Minas Gerais and Distrito Federal.”
news.mongabay.com/2010/0708-neme_operation_jurupari.html
in any case I am sure none of this will affect the contractual agreement with China and the soy inport from Brazil, or will it ?
brisk economic growth........
Exports rose 22% while imports surged by 40%, driven by increased demand for fertilizer, iron-ore and car parts.........
Imports are starting to recover as the economy is peaking.......
Cristina Kirchner announced another Central Bank record of reserves, and confirmed her administration’s policy of cutting government debt.........
International reserves of the Argentine Central Bank reached 51.008 billion.....
“Today we have 51.008 billion US dollars in reserves and we broke another one of our own records. It fills us with pride. We are going to be able to pay the Boden 12, which will not be swapped but paid for, because the plan is to continue to get out of debt. This is a good path”
all this data is relative, export rose 22% could mean it rose from 1.000.000$ to 1.220.000$, and the inport rose 40% can mean it rose from 100$ to 140$, in any case since there is no point of reference, what I get from this report is that we have 40% greater purchasing power to import and that this purchasing power is backed by an increase in export income. #3 is turning macro economics into a grade 4th math quiz and #4 his little class mate helping along.
this would be a bad sign since the cattle industry in both Barazil and Argentina are losing ground to the soy fields, We have to wait and see what happens to the Brazil's soy king fiasco.
Bull. first of all it's Brazil. according to HSBC bank study (for who I work)..Brazil has plenty of land (more than argentina) for further growth in soy without losing any land for cattle that is the biggest in the world. Brazil's soy king fiasco? Do they have a king or you just envy them by calling them a king because they do simply better business than your silly nation. I suspect the last one, because we both know they are doing better than the argies, when it comes to business. Oh by the way, they are on track for another record..Laugh. Third, Brazil isn't that highly depend on exports on soy or other commodities like iron, coffee, sugar, poultry, as many people like to think. It's the third most industrialized nation in the Americas, and none of the south american nations comes even close to them. You read that idiot avergas how silly your nation really is today 2010? . Your GDP+Chile's GDP is less the GDP of the state of Sao Paulo. LAUGH.
International reserves of the Argentine Central Bank broke a new record today: 51.076 billion....
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