Brazilian exports to Argentina fall 31.5%, shows FGV report

In the first month of 2024, Brazilian exports to Argentina saw an impressive year-on-year drop of 31.5%. This decline led Argentina’s share in Brazil’s exports to only 2.8%, the lowest recorded in January, as shown by the Icomex index developed by the Brazilian Institute of Economics at the Getulio Vargas Foundation (Ibre/FGV).

FGV’s report also shows that the Argentine economic crisis negatively impacted sales of passenger cars, which underwent a 38.2% contraction in value.

The following chart shows Brazil’s container exports to Argentina between Jan 2022 and Dec 2023. The data is from DataLiner.

Container Exports to Argentina | Jan 2022 – Dec 2023 | TEUs

Source: DataLiner (click here to request a demo)

Meanwhile, export volumes to China increased by 56.2%, while those to the United States increased by 31.6%. However, sales to the European Union declined by 18.0%.

Brazil’s trade surplus reached a record value of US$ 6.5 billion in January, the highest recorded for the month on record since 1997. China was the main reason behind this process, yielding a positive balance of US$ 2.7 billion. Additionally, trade with Africa, the Middle East, and South America (excluding Argentina) totaled US$ 2.4 billion, and with Asia (excluding China) reached US$ 1.2 billion. The United States contributed US$ 244 million to the trade surplus in January.

FGV emphasized the importance of Brazil maintaining a “global trader” stance to capitalize on opportunities in various markets. The Icomex report also indicated that the record surplus in January strengthens expectations for a favorable performance of Brazil’s trade balance throughout 2024.

In the comparison between January 2024 and January 2023, Brazilian exports grew by 18.5% in value, while imports decreased by 0.1%. In terms of volume, exports increased by 21.1%, and imports rose by 9.7%. Regarding prices, there was a 2.0% decrease in exports and an 8.8% reduction in imports.

Source: Monitor do Mercado

Click here to read the original news article: https://monitordomercado.com.br/noticias/72679-exportacoes-brasileiras-para-a-argentina-caem-315-aponta-fgv/

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