LIMA: Peru is likely to report a neutral trade balance for August, and strong mineral exports in coming months are expected to narrow its more than $1 billion trade gap this year, the central bank president said on Monday.
"In August the trend is reversing," Central Bank President Julio Velarde told reporters. "We will still have a deficit this year, but there will be ... a deficit of zero in August and a surplus from September to December."
Peru clocked a $1.2 billion trade deficit in the first seven months of this year as export earnings fell more than expected on weakening global mineral prices and softening demand.
Velarde said the surplus in the last four months of 2013 would be more than $400 million - which together with a zero balance in August would narrow this year's trade gap to around $800 million.
In its most recent official report, the central bank forecast a $666 million trade deficit this year.
Peru has not reported a trade deficit since 2001 and last year enjoyed a $4.5 billion surplus.
Exports in August rose 20 percent over July to $3.9 billion, Velarde said.
Comments
Comments are closed.