MercoPress. South Atlantic News Agency

Uruguay's exports down for the fourth month running

Uruguay's exports were down 20% in February compared to a year ago, the fourth month running, evidence that the global slowdown has reached the country's foreign trade, according to Foreign Trade expert Luis Bonifacino, quoted in the Montevideo press.

Exports contracted 10% last November; another 3% in December, followed by 10% in January and now 20%, which means February 2009 exports totalled 391 million US dollars compared to 491 million a year ago at the peak of the export drive and international prices for Uruguayan commodities. Imports also suffered an impact and in the first two months of this year fell 22% from 907 million US dollars in 2008 to 700 million this year. A more detailed analysis of the fall in exports reveals that the slowdown started with beef, hides and textiles, followed in February by dairy products and wheat, bashed by falling prices and declining demand. However according to Bonifacino some commodities such as beef, rice seem to have reached their floor and a slight price recovery can be expected. Brazil remains Uruguay's main exports destination since 2007 having surpassed a billion US dollars in 2008, which represents 17% of the country's overseas sales. January, February this year also confirm Brazil's advance having purchased 23% of Uruguayan exports equivalent to 178 million US dollars, followed by Argentina.