MercoPress. South Atlantic News Agency

Argentine trade surplus shrinks 22% in July as imports outpace exports

Fuel imports (diesel, LNG, fuel oil, electricity) soared 102%

Argentina's trade surplus shrank 22% in July from a year earlier to 672 million dollars as import growth continued to outpace exports, the government said on Tuesday. The trade surplus totalled 861 million dollars in July 2010.

Argentina's economy is growing at an annual rate of nearly 9%, stoking demand for imported goods.

Inflation is eroding the local currency's competitive edge, making imports relatively less expensive.

In July, imports surged 30% to 6.65 billion dollars on the back of higher prices and greater volumes, the INDEC national statistics agency reported.

Fuel and lubricant imports jumped 102% in July from a year earlier, responding to heightened energy demand during the southern hemisphere's winter. These purchases included diesel, liquefied natural gas (LNG), fuel oil and electricity.

Meanwhile, exports rose 22% year-on-year to 7.32 billion dollars explained almost entirely by higher prices for the goods Argentina sells abroad.

Car sales to Brazil and grains and oilseed products were among the country's most dynamic exports last month, the government said.

Argentina's trade surplus from January through July totalled 6.46 billion, which is 21% smaller than during the same period of 2010.