Trade Account Deteriorating Further

November 2006 | Market Strategy

The accumulated trade deficit for the first nine months of 2006 came in at US$1.93bn, growing by 160.3% y-o-y (up from 45.9% y-o-y for the same time period in 2005). The country has run a trade deficit in every quarter since the recession in 2002. The trade balance has deteriorated substantially since the beginning of 2006, as the deficit rose by 199.6% y-o-y in Q206 and by 84.9% y-o-y in Q306. Given the external climate and Paraguay's trade performance so far this year, the gap between exports and imports is likely to widen, and consequently we forecast a full-year trade deficit of US$3.3bn, up from US$1.9bn

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