Despite the drop in exports during November, which fell by 17% compared to October, forecasts indicate that Brazil's accelerated recovery will increase industrial shipments during 2021. Due to a rise in consumption in the neighbouring country, sales expected to grow by 22% on average—the expansion expected to be led by vehicles and auto parts which could reach 60% year-on-year growth.
The November trade surplus fell to $271 million, the lowest for the year, which reduced 89% compared to the positive balance in November 2019. In the 11th month of the year, foreign purchases were 20.7% higher than in the same month last year, while exports were 25.6% lower than in the same period in 2019. During the first eleven months of 2020, the country accumulated a trade surplus of $12.49 billion, compared to $13.75 billion for the same period in 2019.
To improve low voltage power lines in the Buenos Aires Metropolitan Area, the Secretariat of Energy signed an agreement this Tuesday with the electricity companies Edenor and Edesur to carry out a work plan with a planned investment of 4.1 billion pesos ($49.3 mn).
Local energy companies in northeast Argentina owe Compañía Administradora del Mercado Mayorista Eléctrico (Cammesa) some 11.1 billion pesos ($132.1 mn). The distributors' collectability throughout the country impacts the commitments that cannot pay when due from generators, transporters and gas suppliers for electricity generation, which does not involve fiscal resources.
The exchange rate gap increased from 150% to 80% in two months, marks the compass of Argentina's trade balance. INDEC's November data reveal that exports plunged by 25.6% against the same month last year, while imports rose by 20.7%. The gap between the wholesale dollar at 83 pesos and the informal one at 150 pesos explain these results: exporters postpone operations, expecting an exchange rate correction, while importers accelerate them.
The Government reported that in the current 2020/21 season, the export sector bought 1.32 million tonnes of sorghum, a 40-fold increase in year-on-year terms with prices at or above those of maize. The sorghum market's strength began to feel during 2020 and reflects in 620,000 tonnes registered for export, 36 per cent higher than in 2019.