Argentina's trade surplus in May reached US$ 1.373m, the highest in five years and a record nine months running with positive results, reported on Wednesday the country's stats office, Indec.
The result was boosted by a twelve month 16.5% increase in exports' value and 34.8% in volume mostly because of the huge grains and oilseeds crop the country is enjoying. In May exports totaled US$ 6.017bn while imports stood at US$ 4.644bn, which also represents a drop of 28% compared to a year ago.
The trade surplus was positive for the ninth month running so far this year and has reached US$ 4.528bn, the best start since 2012, according to Argentina's Finance ministry.
A report from a private consultant, ABECEB, states that imports continue to decrease, with a 7.3% drop in the level of prices and 22.3% in volume, reflecting the current recession in the country and a 3.9% increase in the foreign exchange rate.
Exports on the other hand can be explained on two main reasons, the jump in the foreign exchange rate and secondly because in May a year ago, Argentina was suffering a serious drought, helping thus to offer a lower comparison base.
That is why exports grew 16.5%, compared to May 2018, with prices down 13.6% and an increase of 34.9% in volume. Overall monthly trade reached US$ 10.6bn, with an 8.1% fall year to year, in a global scenario of persistent trade disputes, points out ABECEB.
During the first five months of the year, exports reached US$ 25.5bn and imports, US$ 20.98bn with a surplus of US$ 4,528. Primary goods exports climbed 61% compared to a year ago, while sales of fuel and energy increased 29% and farm manufactured goods, 4%, but industrial manufactured goods were almost stagnant at 0.7%..
Imports in May were down 28% with capital goods falling 37.4%; intermediate goods, down 16%; fuels and lubricants, also 41.5% down, as well as spares and accessories for capital goods, 15.1%; consumer goods, 22.1% and cars, 58.6%.
Indec said the surplus can be explained with the increase in exports, mainly grains and oilseeds, laird, cooking oil and different meats.
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As I keep telling Reekie, some (admittedly not all) economic indicators have improved under Macri, a fact that he fails to recognise.Jun 27th, 2019 - 05:09 pm 0
EM,Jul 02nd, 2019 - 05:26 pm 0
Without reading carefully, Reekie jumps to conclusions he believes support his illogical defence of the CFK regime.
...This is clearly shown by the abrupt drop in imports, especially of capital goods.
Let us check this fact. https://tradingeconomics.com/argentina/imports
You are correct, the level of imports has decreased recently. However, if you look at the 10-year data there is a clear cycle in the level of imports and the current dip is to the same level it was in 2017, 2016 and 2015 so I'm not sure that there is anything particularly unusual about this.
Like I keep saying, there is a bigger picture out there beyond cherry picking only the facts that support your own opinions. As I also keep saying, I am not an economist so I don't know which indicators are the critical ones or which are the most indicative of the future. I simply to try to provide some balance to your ongoing biased commentary. Even when there is a bit of apparent good news, your spin on it is that it is misleading and point to an alternative statistic which, it appears, is simply following a seasonal trend.
ZBJun 30th, 2019 - 02:36 am -1
Without reading carefully, Zaphod jumps to conclusions he believes support his hopeless defence of the Macri regime.
Instead, the “fiscal surplus” underscores the deep recession Argentina is traversing under the stranglehold of the “déficit zero” imposed by the IMF that has siphoned most currency from the marketplace.
This is clearly shown by the abrupt drop in imports, especially of capital goods.
The country’s economy suffocates under Macrist measures that impact every single sector, with the exception of some corporations with links to Macri and his merry men.
Title for a future book about this: “How to destroy a country in just four years and still get away with it.”