According to data from the latest bilateral trade report prepared by the Argentine Chamber of Commerce and Services (CAC), bilateral trade between Argentina and Brazil was $1721 million in the twelfth month of the year 2023, 12% lower than the value obtained in the same period in 2022, when it was USD 1954 million. Likewise, trade fell by 10,9% compared to last November, due to a drop in imports of 14,3% and exports of 7,3%.
Argentine sales to Brazil fell by 2023% in December 9,7 compared to December 2022 (ninth consecutive month of decline) to USD 886 million, while imports from that destination were USD 834 million and showed a year-on-year decrease of 14,3%. Thus, the Trade balance for Argentina showed a surplus of USD 52 million (after eleven months of negative value).
Deficit year
Trade between the two countries accumulated during theThe year 2023 a negative balance for Argentina due to USD 4719 billion. It is worth noting that exports decreased by 8,4% between January and December 2023 compared to the twelve months of 2022, while imports from Brazil increased by 8,9% in the same period.
The year-on-year drop in Argentina's exports to Brazil recorded in December (9,7%) was mainly due to the decrease in crude oil or bituminous mineral oils and preparations, wheat and rye, ethylene polymers in primary forms and cereals, and liquefied propane and butane, while the year-on-year drop in Argentine imports (14,3%) was mainly explained by the decrease in pipes and hollow profiles and accessories for iron or steel pipes, civil engineering installations and equipment, and piston engines and their parts, among others.
Argentina positioned itself in fifth place among the elders Brazilian suppliers, behind China and Hong Kong and Macao (USD 4622 million), the United States (USD 3004 million), Russia (USD 1521 million) and Germany (USD 982 million).
In turn, among the main buyers from Brazil, Argentina was placed quarter, behind China, Hong Kong and Macao (US$ 8844 million), the United States (US$ 3407 million) and the Netherlands (US$ 916 million).
Brazil's exports to the world increased by 9,5% in December 2023 with compared to the same month in 2022, from USD 26.342 billion to USD 28.839 billion. Meanwhile, total imports fell by 10,7% compared to those recorded a year ago (USD 21.809 billion in 2022 vs. USD 19.479 billion this year). Thus, the Brazilian trade result was surplus - for the twenty-third consecutive month - by USD 9360 billion, a situation similar to that observed in December 2022: in that month the balance had been positive by USD 4533 billion.
Market expectations released by the Central Bank of Brazil in December showed an increase compared to the previous month in terms of estimated growth for 2023 (2,92% versus 2,84%). The expectation for annual price increases decreased slightly, going from 4,46% in the previous month to 4,54%. Likewise, the Selic interest rate level is expected to remain at 11,75%, which is the current value.
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