June’s trade deficit reached a record US$1.7 billion, meaning Argentina was US$4.4 billion in the red over the first half of the year. Against a backdrop of the potent impact of this year’s drought, private consultancies expect a trade deficit of around US$7 billion for this year. “The deterioration of the trade balance won’t be any larger than that thanks to the significant reduction of the energy trade deficit, which will go from -US$4.4 billion in 2022 to a slight deficit of around US$1 billion in 2023, and even a virtual equilibrium can’t be ruled out.”The improvement in the energy trade balance will be consolidated from next year onwards. “We’re seeing climate change”“For next year, we expect a trade surplus, which would be driven by a recovery in harvest levels,” Santiago Manoukian, head of research at consulting firm Ecolatina, told the Herald’s sister title, Ámbito. “In line with the ‘Productive Argentina 2030’ plan, the remaining exports of goods will grow from US$37.7 billion to US$54.5 billion between 2024 and 2030.

Source: Bueno Aires Herald July 22, 2023 01:35 UTC