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.