MercoPress. South Atlantic News Agency
In four months Uruguay exports fell faster than imports: billion dollar deficit
Overall imports in Jan-April dropped 3.9%, totalling 3.4 billion dollars. Uruguay’s trade deficit climbed to over a billion dollars in the first four months of the year compared to 975 million dollars in the same period a year ago. So far this year the fall in exports has been stronger than that of imports, which has led to the 1.045 billion dollars deficit according to the latest stats from the Central bank.
The situation is even more negative when analyzing the trend in April, because exports dropped 6% and imports climbed 11.6%, which means the month’s deficit reached 241 million dollars.
In the first quarter of the year exports dropped 9.4% totalling 2.36 billion dollars, according to the Central bank.
The drop in exports in 2013 is attributed to the fall of produce related to commodities, which descended 28.4% in the four months, and have 6.6 percentage points incidence on the overall fall of 9.4%.
More specifically exports of grains and oilseeds were down 35.1% in the four month period compared to a year ago, while exports from forestry: paper, pulp, wood, suffered an 18.8% decline.
Manufacturing overseas sales dropped 3.7% in the four months with an 2.8 percentage points incidence in the main indicator.
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Read all commentsThis is what happens when you have an agrarian society and prices drop.
Jun 03rd, 2013 - 03:25 pm 0Manufacturing in Uruguay is woefully small and unlikely to get bigger while the government keep employing the dead beats to sweep the streets and the Ramblas instead of using modern machinery and taking up valuable profits in taxes to keep the employment figures ‘down’.
As far as I can tell the dead hand of government with Licences, ‘enforcement’ that the company have to pay for even when there are no problems anyway, heavy handed and dead headed unions who have the employers by the balls and last but not least workshy workers is never going to go away without some fundamental changes.
It is no wonder foreigners don’t want to start businesses here: I NEVER would when I see what happens to my friends in their businesses and these are the locals. Disgraceful.
Chris
Jun 04th, 2013 - 08:27 am 0Sometimes you come out as a sour old man.
But I like you.
And we need your expertise ;)
2 Stevie
Jun 04th, 2013 - 11:09 am 0I am not used to mollycoddling people who are supposed to be grown-ups and running a country should certainly involve grown-ups, don't you think?
Uruguay, a country which I love and am very grateful to for taking us in, is clearly at a crossroads.
It cannot bumble along any more with second rate decisions and hoping that 'it will be alright in the end'.
A ONE BILLION shortfall in four months is both shocking (or it ought to be) and disgraceful. If it carries on the 'bill' at the end of the year will be in excess of 5 billion.
There are only 3 million of us in the country and a hell of a lot less taxpayers. Where is the money going to come from to balance the books, or doesn’t it matter?
You seem not to understand that I make these suggestions because I CARE about this great country. If I were quiet it would be because I did not GAF.
I have, only yesterday, renegotiated our primary investment at the conclusion of the first two years. I have put it all, plus some, back into supporting the government. I am doing what I can to help, some members of the government need to start doing it themselves.
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