During the first quarter of the year, the trade balance marked a surplus of $3.29 billion, 64% more than the $2 billion recorded between January and March 2019, the billing for exports fell 6.8%, while imports fell 18%. Argentina’s foreign trade could decrease due to the contraction of the economies of its main trading partners: Brazil, China and the United States.
The agency said in a statement that this happens after the authorities failed to pay interest on three sovereign bonds within the 30-day grace period, which expired on May 22. According to Fitch’s criteria, this means a default. Fitch recalls that the parties made progress; but also notes that there is uncertainty about the prospects for an agreement.
The anti-dumping and anti-subsidy duties have been in force since 2018 and together represent more than 130% in terms of rates. Thus, the country is still unable to recover a market that, before the entry into force of the sanctions, generated revenues of about $1.2 billion. The agro-industrial sector rejected the decision and warned that European purchases are also paralyzed. They predict that external sales of biofuel will fall 30% this year.
The National Public Sector (SPN) saw its primary expenditures increased by 96.8% over the same month in 2019; it recorded a primary deficit of 228.8 billion pesos ($3.35 bn) and a financial deficit of 266.05 billion pesos ($3.9 bn) after the payment of 37.23 billion pesos ($545.8 mn) in interest on public debt.
In the Metropolitan Area of Buenos Aires (AMBA), 38.8% of households reported a 50% income fall during April. In 18.8% of homes, the decline would have been even more significant than 50%. Only 37.1% of the households stated that their income would not have changed, and 5.1% said that their family income had increased in the context of quarantine. These figures involve 57.6% of households in a study by the Social Debt Observatory of the Argentine Catholic University.