MercoPress. South Atlantic News Agency

Argentina’s trade surplus contracts 42.8% during September

Exports fell faster than imports

Argentina's September trade surplus narrowed 42.8% from the same month a year ago, with exports falling even faster than imports, the government said this week. September's 926 million US dollars surplus, which fell short of analysts' expectations, is the smallest since January.

The trade surplus was 1.62 billion USD in September 2008. Exports last month sank 34% to 4.58 billion USD, falling even faster than imports, which plunged 31% to 3.66 billion USD, according to Indec, the Argentine statistics office.

The global slowdown has hit demand for Argentina's key exports of automobiles and grains such as soybeans and corn, pressuring the trade surplus and putting an end to six years of robust growth at “Chinese rates”.

A sharp drought also slashed production of corn, wheat and soybeans in the last harvest. A long standing conflict with farmers over export taxes has distorted local markets and prices.

Imports have also slumped due to weaker consumer demand and slowing orders for machinery and other industrial goods, allowing the country to maintain a trade surplus. In August this year, the trade surplus of Latinamerica’s third economy was 1.16 billion USD