Imports decline with the economy | The …

The trade balance recorded a positive balance of $ 1131 million in April, which implies a sharp improvement from the red of $ 887 million in the same period last year. This performance is primarily explained by the collapse of imports of vehicles, machinery and electrical equipment, due to the decline in investment and consumption in the local market . Exports increased in quantity, but barely made up for falling prices. In the first quarter, the surplus in commercial currency stood at $ 3147 million, compared to a deficit of $ 3259 million at this peak last year.

The reversal of the trade balance is one of the few positive points of the Cambiemos economy dashboard. This involves the recovery of a real source of foreign currency, in a context of strong pressure on the external sector due to the flight of the maturity of capital and debt. However, the crisis of consumption and investment in the local economy has reversed with respect to the significant improvement in the trade balance that has occurred since the middle of last year. In other words, the increase in poverty and unemployment, the closure of factories and the stopping of investment projects have a negative impact on imports, thus improving the net balance in commercial currency. This effect predominates on the increase of imports and the reduction of exports due to the devaluation of the peso. The commercial improvement is also due to the resumption of soybean cultivation compared to last year, when the drought had reduced production by 30%.

In April, imports fell 31.6%, the ninth consecutive year-on-year decline. At the item level, purchases of capital goods dropped by 42.3%; parts and accessories for capital goods (28.2%) and consumer goods decreased by 35%. Lower vehicle revenues (-452 million dollars), parts for electronic devices and printed circuits (-126 million), trucks and utilities (-52 million), natural gas in the gaseous state (-47 million) and soy beans (-42 million). Imports from Mercosur fell above average (-40.6%).

Exports rose 1.7% in April, despite a 7.7% drop in prices, more than offset by a 10.3% increase in quantities shipped. The value of primary commodity exports increased by 18.8% thanks to improved sales of grain corn ($ 192 million), wheat ($ 73 million) and soybean ($ 56 million). On the other hand, agricultural products declined by 5.6% due to lower sales of raw soybean oil and soy flour and pellets. In the case of industrial exports, the drop in shipments of cars, trucks and lithium carbonate was 2.3%, while sales of biodiesel and aluminum increased.

In the first four months, the value of exports was down 1.2% due to a deterioration of 2.1% in agricultural products and 7.7% in industrial products. On the other hand, imports fell by 28.9% in four months due to lower income from capital goods (-40.7%), intermediate goods (-13.5%), fuels and lubricants (-18.7), parts and accessories for capital goods (-26.5), consumer goods (-32.9) and vehicles (-58.5). It is estimated that the year will end with a trade surplus of the order of $ 10 billion, which implies a clear improvement over previous years due to the impact of the crisis of consumption and investment on imported quantities and agricultural recovery.

In the case of trade with Brazil, the balance of April posted a surplus of 4 million euros, which is explained by a 45.9% drop in imports from Brazil. one year on the other. Exports also declined, although to a lesser extent, 6.6%. The sum of bilateral exports and imports – world trade – represents a 31.4% reduction compared to the fourth month of last year. Due to the sharp deterioration of the domestic market, five consecutive months of surpluses with Brazil have accumulated.