{"id":8004,"date":"2015-07-27T18:18:15","date_gmt":"2015-07-27T22:18:15","guid":{"rendered":"https:\/\/www.datamyne.com\/?p=8004"},"modified":"2022-05-03T12:44:57","modified_gmt":"2022-05-03T16:44:57","slug":"mercosurs-falling-currencies-failing-to-lift-exports","status":"publish","type":"post","link":"https:\/\/www.datamyne.com\/knowledge-center\/indicators\/mercosurs-falling-currencies-failing-to-lift-exports\/","title":{"rendered":"Mercosur\u2019s Falling Currencies Failing to Lift Exports"},"content":{"rendered":"

One benefit of a weakening currency should be exports priced to move in the global marketplace. So the slide in value of, for example, Brazil\u2019s real should be translating into rising exports. But that\u2019s not happening in Brazil or other key emerging markets that the Wall Street Journal calls<\/a> \u201cunlucky.\u201d<\/p>\n

We took a look at our trade data through June 2015 for Brazil and its fellow founding members of Mercosur: we\u00a0found falling currencies failing to lift exports in Argentina, Brazil and Uruguay \u2013 with Paraguay bucking the trend in first-half 2015.<\/p>\n

\"Mercosur<\/a>Argentina\u2019s trade policies aimed at controlling its balance of payments have had an impact on exports as well as imports. But there are global trends overwhelming any effects of devalued currencies.<\/p>\n

Commodities prices have been battered as overall global demand has been and is expected to remain weak (see, for instance, the World Bank\u2019s latest outlook<\/a>). The Mercosur countries\u2019 mainstay exports are commodities \u2013 minerals, oil (for Brazil), soybeans and other agricultural products (download our free report,\u00a0Quick Look@Mercosur Trade in 2014<\/a>, for each member\u2019s top exports).<\/p>\n

And the top customer for many of these commodities is China, now engaged in rebalancing its economy and so trimming imports (as the data shows).<\/p>\n

\"Mercosur<\/a><\/p>\n

Note that China is also Brazil\u2019s No. 1, Uruguay\u2019s No. 2 and Argentina\u2019s No. 3 export market. Again, Paraguay breaks ranks with its fellow block members: China generally ranks around 21st<\/sup> among the country\u2019s markets, accounting for less than 1% of its exports.<\/p>\n

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