Weekly Report - 23 April 2009 (WR-09-16)

ARGENTINA | Trade surplus shrinks. The primary fiscal surplus (the budget surplus before debt payments) fell 60.7% to just Arg$895.6m (US$242m) in March compared with the same month in 2008, the economy ministry revealed. After debt servicing, the fiscal deficit was Arg$732.8m (US$198.6m). The primary fiscal surplus in the first quarter was Arg$4.50bn (US$1.22bn), down 49%. Separately President Cristina Fernández announced that the trade surplus in the first quarter was Arg$12.54 (US$3.43bn), up 6% on the same period in 2008. She said this was a sign the economy was in better shape than critics claimed. The increased trade surplus, however, is almost certainly a result of falling imports (and import barriers) due to a slowing economy rather than an increase in exports. The tax take in March increased by 23% year-on-year to Arg$21.77bn (US$5.9bn).