Argentina, whose population goes to the polls this Sunday (19) to choose the country’s next president, recorded a trade deficit of US$454 million (R$2.23 billion) in October, which contrasts with the positive balance of US $1.8 billion (R$8.84 billion) in the same month in 2022, according to official information released this Friday (17).
This is the ninth interannual deficit recorded in 2023. In October, Argentina’s exports totaled US$5.3 billion (R$26.02 billion), a drop of 32.4% compared to the previous year, and imports totaled US$5.8 billion (R$28.46 billion), representing a decline of 3.9%. Trade volume (exports plus imports) fell 20.1% year-on-year in October, to US$11.2 billion (R$54.97 billion).
The South American country is currently facing a situation of commercial and exchange rate crisis, with growing deficits, a drop in exports and restrictions on access to dollars – imposed by Peronist president Alberto Fernández, whose Economy Minister, Sergio Massa, is his presidential candidate Argentina.
In the first ten months of the year, Argentina accumulated a trade deficit of US$7.3 billion (R$35.83 billion) compared to a positive balance of US$4.4 billion (R$21.58 billion) in the same period of 2022, with exports between January and October totaling US$56.58 billion (R$277.64 billion) (-24.8% compared to the previous year), and imports, US$63.97 billion (R $313.87 billion) (-9.6% from the previous year).
Argentina had recorded a trade surplus of US$6.9 billion (R$33.87 billion) last year, a drop of 53% compared to the positive balance achieved in 2021. Affected by the scarcity of monetary reserves, the country South American has restricted access to dollars to pay for imports since July 2022, while Fernández’s government is seeking to encourage exports to try to increase the inflow of foreign currency, but is having the opposite effect due to expectations of devaluation.
Argentina could end 2023 with a trade deficit of US$5.9 billion (R$28.96 billion), with exports of US$84.66 billion (R$415.47 billion) and imports of US$ 90.62 billion (R$444.84 billion), according to the 2024 budget project recently presented to the country’s Parliament. For 2024, the projection is to recover the trade surplus, with a positive balance of US$9.3 billion (R$45.63 billion), as a result of US$101.2 billion (R$496.89 billion) in exports and US$91.8 billion (R$450.64 billion) in imports.
The unfavorable economic scenario is one of the main challenges for candidates running for president of Argentina. Peronist Sergio Massa, from the ruling coalition União pela Pátria, and libertarian economist Javier Milei, from A Liberdade Avança, will contest the second round this Sunday (19) after a tight result in the first round, held on October 22.
Opinion polls point to a technical tie between the two candidates, with a slight advantage for Milei. The election result will be decisive for the future of Argentina, as it seeks to emerge from the crisis and resume growth. (With EFE Agency)
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