RIO DE JANEIRO, BRAZIL – Argentine sales to Brazil rose 4.4% to US$973 million in March 2022 compared to March 2021, continuing the positive trend from the previous month.
Meanwhile, imports from this destination country amounted to US$1.196 billion, registering a 9.6% increase – the lowest in the last thirteen months – compared to March 2021.
In this way, bilateral trade accumulated a negative trade balance for Argentina of US$622 million in the first three months of the year, as exports decreased by 2.5% in 2022 compared to the first three months of 2021, while imports from Brazil increased by 22% in the same period.
Overall, bilateral trade between Argentina and Brazil totaled US$2.169 billion in the third month of the year, up 7.2%% from the same period of 2021, when it was US$2.023 billion, and up 18.1% from February, as imports increased 14.6% and exports 22.8%.
The increase in Argentine exports to Brazil recorded in March (4.4%) year-on-year was mainly due to the rise in exports of passenger cars, unground wheat and rye, liquefied propane and butane, and reciprocating engines and parts thereof (exports of motor vehicles for the transport of goods and particular uses decreased).
The year-on-year increase in Argentina’s imports (9.6%) was mainly due to parts and accessories for motor vehicles and paper and paperboard. In contrast, imports of iron ore and iron ore concentrates decreased.
Argentina ranks third among Brazil’s largest suppliers, behind China and Hong Kong, Macao (US$5.045 billion), and the United States (US$3.812 billion).
Among Brazil’s leading buyers, Argentina also ranks third, behind China, Hong Kong, and Macau (US$9.199 billion) and the United States (US$2.904 billion).
Brazilian exports to the world increased by 19.6% in March 2022 compared to March 2021, from US$24,325 billion to US$ 29,095 billion.
For their part, total imports increased by 21.5% year-on-year (US$17,864 billion in 2021 compared to US$21.711 billion this year).
The Brazilian trade balance thus showed a surplus of US$7.384 billion, a similar situation to March 2021, but with a higher nominal value (in 2021, the positive balance had been US$6.461 billion).
The market expectations surveyed by the Brazilian Central Bank improved slightly in terms of expected growth for 2022 (0.5% compared to 0.3% in the last measurement).
However, expectations for price growth increased to 6.86% y/y from 5.6% in the previous month. They also expect the Selic interest rate to reach 13% (currently 11.75%) to counter inflation.