Argentina’s Current Account Surplus Narrows

Argentina’s current account surplus narrowed to US$3.1 billion in Q2 2010 from US$4.6 billion in Q2 2009, but it reversed from the US$0.3 billion deficit registered in Q1 2010. The result was worse than consensus expectations of US$3.3 billion, but broadly in line with RGE’s US$3 billion. The narrowing of the trade surplus to US$6 billion in Q2 2010 from US$6.8 billion in Q2 2009, as imports grew (51% y/y) faster than exports (24% y/y), together with a larger deficit in investment income to US$2.5 billion from US$2 billion in Q2 2009, shrunk the current account surplus. In H1 2010, the current account surplus narrowed to US$2.78 billion from US$ 6.1 billion in H1 2009.

Argentina’s Current Account Dynamics (U.S. dollars, millions)

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Source: INDEC and RGE

Editor’s Note: This post is excerpted from a much longer analysis available exclusively to RGE Clients, Brazil’s Current Account Deficit Widens; Argentina’s Growth Unsustainable


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