# **<mark>Box 1: Pattern of Exports in 2008</mark>**

<mark>During the first nine months of 2008 exports grew by 40 percent, mainly driven by an increase in prices. Imports increased by 39 percent compared to the same period in 2007, with a resulting trade balance of US$10,229 million. Merchandise trade grew 50 percent compared to the same period in 2007. The primary sector grew as a share of total exports, increasing to almost one quarter of export value (Figure 8). Agriculture manufacturing remained stable, while industrial manufacturing and energy declined slightly as a share of total exports.</mark> <!-- Start of picture text --> Figure 8. Share of Exports by Product Group (left) and Destination (right)<br>35 30<br>30 Jan-Sep 2007 Jan-Sep 2008 25 Jan-Sep 2007 Jan-Sep 2008<br>25 20<br>20<br>15<br>15<br>10<br>10<br>5<br>5<br>- 0 MERCOSUR Chile Middle East, China EU ROW NAFTA<br>Fuels and Primary Agriculture Industrial Magreb y<br>energy Products Manufacture Manufacture Egipto<br> Source : CEI based on INDEC.<br>During the first months of 2008 the EU and China were the most important export markets. China became Argentina’s<br>third largest export market, due to the increase in exports of primary products and agriculture manufactures. The Middle<br><!-- End of picture text --> <mark>During the first months of 2008 the EU and China were the most important export markets. China became Argentina’s third largest export market, due to the increase in exports of primary products and agriculture manufactures. The Middle East and Maghreb also increased their importance in total exports, from 6 percent in 2007 to 9 percent in 2008, led by an increase in demand for oleaginous products.</mark> <mark>Exports in services increased from the previous period by 17 percent, reaching US$ 5,695 million. Imports accounted for US$ 6,255 million, an increase of 23 percent compared to the previous period. Even though overall there was an increase in deficit for the services trade, it still remained below the values registered between 1994 and 2001. In fact, service exports have constantly increased since 2003, with an average growth rate of 24 percent in 2003-2007. During the first semester of 2008, this growth was led by travel and business services, which together accounted for 71 percent of service exports.</mark>

**Argentina’s exports remain strongly natural resource-intensive, while imports are highly technology-intensive.** The structure of neither imports nor exports has drastically changed over time (Figure 9). Exports contain an average of 70 percent natural resources, while imports contain very little natural resources and a very high composition of technological products.

**Figure 9. Evolution in Share of Factor Content for Argentina Exports (left) and Imports (right)**

<!-- Start of picture text --> 100% 100%<br>80% 80%<br>60% 60%<br>40% 40%<br>20% 20%<br>0% 0%<br>1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006<br>Natural Resource Unskilled Labor Technology Human Capital Natural Resource Unskilled Labor Technology Human Capital<br><!-- End of picture text --> _Source_ : COMTRADE and author’s computations based on UNCTAD (1985) methodology, SITC1 4 digit.

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