MercoPress. South Atlantic News Agency

Yet another month of trade deficit for Argentina

It was the second consecutive month with a trade deficit for an economy badly in need of hard currency

Argentina's trade balance came out in the red in July of 2022 after yielding a US$ 437 million deficit, the National Institute of Statistics and Census (Indec) showed Monday in a report.

It was the second consecutive month with a trade deficit for an economy badly in need of hard currency.

The negative outcome was a severe blow when compared to a US$ 1.536 billion surplus registered in the same month of last year, the INDEC document also revealed.

Purchases of processed fuels and lubricants reflected the highest variation and increase in absolute values of all sub-categories (US$ 1,368 million; +217.7% year-on-year), explained by a 111.3% increase in prices and a 50.8% increase in quantities.

Imports totaled US$ 8.21 billion, an increase of 43.7%, driven by a 27.8% increase in prices and a 12.4% increase in quantities.

Exports advanced only 7.2% to US$ 7.773 billion, while imports grew 43.7% to US$ 8.21 billion. Hence, a negative balance of US$ 437 million was recorded as sales abroad fell 5.6% interannually for a US$ 1.973 billion yoy gap.

In the first seven months of 2022, the trade balance was US$ 2,540 million, well below the US$ 8,310 million recorded in the same period of 2021.

“If prices had been the same as in the same period of 2021, the trade balance would have been US$ 2,410 million. In other words, the improvement in prices had a net effect of US$130 million,” economist Nadin Argañaraz told Ámbito.