MercoPress. South Atlantic News Agency
Argentina reports trade surplus in September, the first since December 2016
September’s trade balance improvement was driven by significant declines in imports of capital and consumer goods, as well as a more competitive peso currency 
Argentina’s agriculture sector withered early in 2018 after the worst drought in 60 years stemmed grain exports and dragged the country’s economy into recession Argentina had a trade surplus of US$ 314 million in September, official statistics agency Indec said on Tuesday, the first since December 2016 and an early sign the devaluation of the peso currency has benefited the country’s exporters.
Economists say September’s trade balance improvement was driven by significant declines in imports of capital and consumer goods, as well as a more competitive peso currency that has benefited exporters.
“The trade surplus in September was the first sign of the expected trade and current account adjustment following the large currency devaluation and sharp slowdown in investment spending,” Goldman Sachs economist Alberto Ramos said in a research note.
Argentina’s peso currency has roughly halved in value against the U.S. dollar so far this year, prompting the South American country to turn to the International Monetary Fund for a US$57.1 billion standby financing deal, the largest in the Fund’s history.
Argentina’s agriculture sector withered early in 2018 after the worst drought in 60 years stemmed grain exports and dragged the country’s economy into recession.
Last month, the Buenos Aires Grains Exchange said farmers could expect favorable weather conditions to bring record grain harvests in the 2018-19 harvest season, contributing to a larger trade surplus next year.
“The expected significant increase in harvest yields in 2019 should contribute to boost exports of agricultural goods and support further trade and current account adjustment,” Ramos said.
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Read all commentsReekie is hardly the person to listen to on economic matters. His self realisation of that fact has caused him to flee to better place to live his life in comfort abroad from where he spouts advice likely to further impoverish his former countrymen.
Oct 25th, 2018 - 05:09 pm +1Socialists often end up consumed by angst and unreasoning hate spewing bile on those who are trying to extract their country from the dire consequences of the socialist system that continually fails its adherents. Argentina's GDP per capita is about 1/4 of the UKs. Despite its massive resources Argentina's human capital largely follows a 'something for nothing' philosophy resulting in miserable poverty for the masses and hellish conditions for the original Indian inhabitants.
Meanwhile talented people who have made some money in Argentina are trying to drag the nation up by its bootstraps facing a barrage of ire from hypocrites who have fled and abandoned their country.
But Reekie keeps saying that the economy is a complete disaster and only getting worse! As I have said before, this isn't true and some economic indicators are improving. The balance of trade is one of them and, although it has seasonal variations, it has been trending in a positive direction since around October 2017.
Oct 24th, 2018 - 07:48 pm 0I am not an economist, but I'd have thought that a business that was improving trade like this would have opportunities to start to improve other metrics such as reducing debt.
TV,
Oct 31st, 2018 - 05:54 pm 0“Reekie is hardly the person to listen to on economic matters”
I know.
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