The exchange with Brazil recorded the second month of surplus due to the collapse of 44% of imports

After four years of a very high trade deficit with Brazil, the balance is reversing against the exchange rate shock that caused the mega devaluation of 2018 that plunged imports into the neighboring country. .

This new scenario, which reduced the deficit by over 50%, from $ 8,200 million in 2017 to 3,900 last year, has intensified further in 2019, which is off to a good start. .

For the second month in a row, a surplus of $ 114 million was recorded in January, based on a 9.5% year-over-year increase in exports, but especially a 43.7% drop in purchases. which was four points higher than the overall average.

The trade deficit with Brazil has fallen by more than 50%, due to the collapse of imports

This improvement "by evil", as it is called on the market, also explains by the strong recessive context of the local economy and the loss of purchasing power indita, which as reported, decreased by 14% in terms of wages. real in 2018.

According to data from the Ecolatina consultancy, according to estimates by the Brazilian Ministry of Development, exports reached 796 million USD, while imports reached 682 million USD.

In external purchases, the most affected items were pbadenger cars and tractors, tractors and auto parts. At the same time, sales benefited from the gradual recovery of the Brazilian economy, which resulted in shipments of cargo, wheat, gas and dairy products.

Devaluation prevented the year 2018 was the year with the largest trade deficit in history

In this context, the consulting firm anticipates a balanced trade balance for this year, with barely 300 million deficits, which would represent a 92% improvement over a 10% increase in exports and a 16% decline in imports. %.

"Nevertheless, if Mercosur's flexibilisation materializes – a possibility mentioned by Macri and Bolsonaro in recent weeks – Argentina would lose its tariff advantage and, as a result, our exports to the neighboring country would be reduced, affecting and the results of the trade balance between the two countries, "they warned of Ecolatina.