Exports fell 16% on the year to $5.25 billion in March, led by a plunge in grain and soybean exports. Shipments of industrial products like cars also fell as sluggish growth in neighboring Brazil trimmed demand for Argentine manufactured goods. Imports decreased 4% to $5.21 billion, led by declines in consumer goods and spare parts, according to preliminary data published by the national statistics agency Indec.
The trade surplus for the first quarter shrank to $121 million, from $1.5 billion a year ago due to a drop in farm shipments and rising fuel imports. Argentina’s energy deficit—the difference between energy exports and imports—widened 19% on the year to $792 million in the quarter.
While the country expects a record soybean crop,
The Argentine economy is widely expected to tip into a recession this year as inflation of more than 30% erodes the public’s purchasing power and spurs locals and foreigners alike to pull their money out of the country. Analysts at Abeceb and Barclays expect the economy to shrink about 1.5% this year.
According to the government’s own figures, industrial production fell 6% due to declines in the automotive and petrochemicals industries.
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