For the first time in the year, the trade balance with Brazil has returned to negative

Consultants Ecolatina and Abeceb relied on data from the Brazilian Ministry of Development, Industry and Foreign Trade (MDIC), which reported imports of US $ 1,021 million, a decrease of 17 , 7% in May, after having remained down about 45% in the last five months.

The reasons for Argentine import behavior are explained by the stability of the exchange rate and a little more clarity regarding the Argentine electoral contest that would have boosted the level of activity in May, and the exchange rate in May 2018 has produces a weak basis of comparison.

On the other hand, the upward trend of the Real observed last May facilitated the decrease in purchases made in the neighboring country. The factors that have reinforced this decline are freight and pbadenger transport vehicles, agricultural machinery, chbadis and soybeans.

In contrast, exports totaled $ 894 million in May and maintained double-digit growth of 12.7% year-on-year, thanks to a Brazilian economy that, despite the outlook for deceleration, still requires foreign goods.

On a disaggregated plan, the best performances were obtained in the case of cargo ships and buses, auto parts, malt, wheat, sunflower oil and tires, highlighted in the reports.

For the remaining months of 2019, it is expected that the favorable export performance will be mitigated by a less marked dynamism in the economy of Mercosur's main trading partner, whose growth prospects are reduced to 1, 3% for this year.

In the case of imports, the local recession will continue to affect them, although greater stability in the exchange rate and less uncertainty could be a stimulus, although a decline of about 25% expected and that bilateral trade generates a surplus of $ 600 million. .