MercoPress. South Atlantic News Agency

Uruguay's trade deficit reached 273 million in six months

Uruguay experienced a trade deficit of 273 million US dollars during the first half of this year according to a release from the Central Bank. Imports soared 25.1% reaching 2.15 billion US dollars and exports 16.2% totalling 1.87 billion.

In the last twelve months the trade deficit was 432 million US dollars with exports increasing 14.5% to 3.67 billion US dollars and imports 22.8% to 4.1 billion.

In June FOB exports jumped 26.9% compared to the same month a year ago, and reached 366 million US dollars (288.5 million US dollars). FOB imports soared 38.9% from 266.6 million US dollars in 2005 to 370 million US dollars this year. This means that the trade deficit in June 2006 was 4 million US dollars compared to a 22 million US dollars surplus in June 2005.

Uruguay which has no fossil fuels had do pay a high bill for energy, 531 million US dollars in the first half of 2006 compared to 396 million in 2005, representing a 34% increase.

Similarly with electricity even when Uruguay has an extended system of dams and reservoirs, but insufficient rainfall and drought have forced the country to import energy from neighbouring Argentina and Brazil further increasing the energy bill. In the first half of this year Uruguay imported 87 million US dollars of electricity compared to 30 million US dollars in the same period in 2005.

Overall the energy bill for Uruguay jumped almost 200 million US dollars in the last twelve months.

Imports of consumer goods jumped 23% in the first half of 2006 totalling 400 million US dollars with a significant hike in automobiles, 28%, and home equipment 29%. Capital goods imports totalled 298 million US dollars representing a 29% increase and intermediate goods (excluding petroleum and electricity) 943 million US dollars.

By regions the main trade deficit was with Mercosur, (343 million US dollars Argentina; 263 million US dollars Brazil; Venezuela (mainly oil) 332 million US dollars).