Argentina's trade surplus shrank 22 per cent in July from a year earlier to $672-million (U.S.) as import growth continued to outpace that of exports, the government said Tuesday.
The country's July primary budget surplus was 388-million pesos ($88.8-million), down sharply from a surplus of 3.91-billion pesos a year earlier, the Economy Ministry said.
July's trade surplus came in below the $760-million median forecast in a Reuters poll, which would have represented a 12 per cent contraction.
Argentina's economy is growing at an annual rate of nearly 9 per cent, stoking demand for imported goods. Inflation is eroding the local currency's competitive edge, making imports relatively less expensive.
In July, imports surged 30 per cent to $6.65-billion on the back of higher prices and greater volumes, the INDEC national statistics agency reported.
Fuel and lubricant imports jumped 102 per cent in July from a year earlier, responding to heightened energy demand during the southern hemisphere's winter. These purchases included diesel, liquefied natural gas, fuel oil and electricity.
Meanwhile, exports rose 22 per cent year-on-year to $7.32-billion, explained almost entirely by higher prices for the goods Argentina sells abroad.
Car sales to Brazil and grains and oilseed products were among the country's most dynamic exports last month, the government said.
Argentina's trade surplus from January through July totalled $6.46-billion, which is 21 per cent smaller than during the same period of 2010.
The trade surplus totalled $861-million in July, 2010.