MercoPress. South Atlantic News Agency

Argentina in February recovers trade surplus, but exports plunge 24%

The impact of the world recession continues to be felt in Argentina with exports plunging 24% in February compared to a year ago, while imports dropped 37%, according to the country’s Statistics and Census Office, Indec.

The bright side is that the trade surplus in February reached 1.278 billion US dollars, up 26.7%. In January Argentina’s foreign trade balance was negative.

Exports in February totalled 3.9 billion US dollars and imports 2.66 billion US dollars.

A private financial consultant said that imports during the first two months of 2009, contracted 38% while exports fell 30%, with a surplus equivalent to 2.25 billion US dollars, which anyhow is a 3.8% reduction over the same two months in 2008.

During January exports dropped 36% compared to Jan 2008, the largest drop since December 1989. Imports on the other hand in January fell 38%, with the surplus contracting 27%.

Indec reports that the lesser value of exports compared to February 2008 can be attributed to a fall in international export prices, 14%, and a 12% drop in volume sales. Sectors which most suffered the impact were cereals, fuels, transport equipment, refined hydrocarbons.

Imports on the other hand suffered a significant reduction in volume, down 34% while prices slid 4%.

Argentina’s main trade partner Mercosur concentrated 23% of exports and 35% of the country’s overseas purchases. But February showed that regional trade is also vulnerable: exports to Mercosur fell 30% and imports, 39%.