MercoPress. South Atlantic News Agency

Argentina's January exports drop 36%; trade surplus 27%

Argentina's exports plunged 36% in January and the trade surplus shrank 27% compared to a year ago according to the latest figures released Wednesday by the country's Statistics Office, Indec.

Exports dropped to 3.7 billion US dollars while imports fell 38% to 2.8 billion meaning the surplus was down to 971 million US dollars. Argentina's overseas sales were hit last month by the worst drought in decades and an overall drop in demand linked to the world slowdown. Commodities exports led the decline, shedding 56% compared with January 2008 due to lower volume and, to a lesser extent, lower prices. Agriculture products accounted for nearly two-thirds of exports in the year ending January 31st. Wheat sales took a major hit after drought nearly halved production in the 2008/09 crop year. Exports were also affected by fewer sales abroad of soy-oil, and of autos, particularly to the country's top market, Brazil. Indec said imports contracted to 2.8 billion US dollars almost exclusively because of a drop in the number of imported goods. The January fall follows December's exports drop of 24% and November's 6%, when the world crisis gradually became increasingly present in Argentina. The January percentage is the highest monthly loss since the current statistics system was established in 1999.