Argentine export decline puts pressure on finances

Significance

Despite imports falling due to the economic downturn and import and foreign exchange controls, Argentina's trade surplus in 2014 fell by one-sixth to 6.7 billion dollars. Export earnings were affected mainly by lower commodities prices, weaker economic growth in Argentina's main trading partners and competitiveness problems. The same obstacles will persist in 2015.

Impacts

• As export earnings are the main source of foreign exchange, their decline points to further trouble for the country's finances.
• The government will continue to use import and foreign exchange controls to strengthen reserves, despite the recent WTO ruling.
• This is aimed above all at preventing macroeconomic instability in an electoral year.