Trade between Argentina and Brazil showed a significant increase in September 2024, with Argentine exports reaching $1272 million, an 29,2% more compared to September 2023, according to the report of the Argentine Chamber of Commerce (CAC).
This rise, which represents the fourth consecutive month of positive variation, was driven primarily by sales of uncrushed wheat and rye, motor vehicles for the transport of goods, passenger cars, and motor vehicle parts and accessories.
On the other hand, Argentine imports from Brazil also experienced an interannual growth of 25,4%, totalizing USD 1454 millions. Among the most imported products were passenger vehicles, vehicles for transporting goods, electric power and road vehicles.
Despite the increase in exports, the Argentina's trade balance with Brazil was negative, registering a deficit of USD 182 million in September. This imbalance is framed in a context where accumulated trade between both countries in the first nine months of 2024 has also left a negative balance of USD 56 million for Argentina. However, Argentine exports grew by 7,3% so far this year, while imports from Brazil decreased by 28,4%.
Argentina remains Brazil's main trading partner
The report highlighted that Argentina remains one of Brazil's main trading partners, ranking in the third place among its largest suppliers, with exports worth USD 1.272 million. It is only surpassed by China, Hong Kong and Macao (USD 5.778 million) and the United States (USD 3.805 million). Similarly, Argentina ranked third as a destination for Brazilian products, behind China, Hong Kong and Macao (USD 7.560 million) and the United States (USD 3.263 million).
Dynamics of Brazil's international trade
In the global context, Brazil's exports to the world grew by just 0,3% in September 2024 compared to the same month of the previous year, reaching USD 28.789 million. Brazil's total imports, on the other hand, registered a more pronounced increase of 19,9%, totaling USD 23.426 million. Despite this increase in imports, Brazil maintained a Trade surplus of USD 5363 million in September, continuing a streak of 32 consecutive months of positive results.
As for growth expectations, the Central Bank of Brazil adjusted its forecasts for 2024, raising the economic growth forecast from 2,68% to 3%. However, it also adjusted annual inflation expectations upwards, rising from 4,30% to 4,38%. In addition, an increase in the Selic interest rate is expected, which could be set at 11,75%, above the current level of 10,75%.
These CAC data reflect an active trade dynamic between Argentina and Brazil, although with a balance that still leaves a negative balance for Argentina. The strengthening of sectors such as the automotive and energy sectors, together with Brazil's growth expectations, could influence the evolution of bilateral trade.
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