Fuels and extractive industries: the sectors with the largest drop in exports in June 2023
The June 2023 exports bulletin, based on data provided by the National Administrative Department of Statistics (DANE) and the National Tax and Customs Directorate (DIAN), highlights a sharp 27.5% decrease in exports, compared to the same period of the previous year.
The behavior of foreign sales is segmented into different product groups, and provides a perspective on the country’s economic trends. Below, we tell you how they varied.
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Exports in June: Fuels and Extractive Industries Products fell sharply
In the first six months of the year, this sector accounted for 51.8% of exports.
In the group of Fuels and Extractive Industries Products, June exports had a value of USD $2,004.1 million FOB. With this, it accumulated USD $12,79.7 million FOB so far this year. This represents a considerable drop of 38.9% in external sales between June 2023 and 2022. These exports, which have historically been the most important for the Colombian economy, have experienced a significant contraction, which has had a significant influence on the overall decline in exports.
The products in this group whose sales decreased were pulp, coke and briquettes (-48.5%); and petroleum, petroleum products and related products (-32.6%).
Agriculture, Food and Beverages
This group is the second most important item in Colombian exports. Between January and June 2023, this sector contributed 21.1% of exports.
In the group of Agriculture, Food and Beverages, June exports amounted to USD $827.3 million FOB, accumulating USD $5,170.6 million FOB so far this year.
Between June 2023 and the same period of 2022, the drop in exports of this group was 21.9%.
The products that fell the most were palm kernel oil (-71.5%), soybean oil and its fractions (-67.3%) and palm oil and its fractions (50.9%).
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Manufactures
This group is the third most important item in Colombian exports. Between January and June 2023, this sector accounted for 20.5% of exports.
In the Manufacturing group, June exports reached USD $903.9 million FOB and accumulated USD $5,045.3 million FOB so far this year.
Between June 2022 and June 2023, it presented a decrease of 6.4% in exports. External sales of ferronickel (-62.8%), manufactured articles classified by material (-15.8%) and miscellaneous manufactured articles (14.2%) were the most affected.
Other Sectors
Exports in this group accounted for 6.6% of total exports in the first six months of the year.
In the Other Sectors group, June exports had a value of USD $250.7 million FOB. Accumulating USD $1,627.9 million FOB so far this year.
Between June 2022 and the same month of 2023, there was a 31.0% growth in external sales. This increase was due to exports corresponding to non-monetary gold (31.7%).
In Colombia, exports in June 2023 show a 27.5% drop compared to the previous year, with a marked influence of the decrease in the group of Fuels and Products of Extractive Industries.
Although some sectors such as Manufacturing and Agriculture, Food and Beverages show smaller drops in exports and those of Other Sectors even grew, the country’s dependence on the extractive industries is evident.
The sharp drop in exports brings back to the table the need to implement strategies to diversify external sales and foster economic resilience in the midst of a challenging global environment.
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