Argentina Lost $1.55 Billion in 2024 Due to Declining Export Prices

In 2024, the prices of Argentina’s exports fell more sharply than those of its imports. Despite posting a record trade surplus in nominal terms, the country would have gained an additional $1.55 billion had export prices remained at 2023 levels.

According to a report released Tuesday (February 04) by Argentina’s national statistics agency, INDEC, export prices dropped 5.8% year-over-year, while import prices declined by 4%. “In 2024, the trade balance showed a surplus of $18.9 billion. However, if last year’s prices had remained unchanged, the surplus would have reached $21.25 billion,” the agency explained.

Between 2004 and 2024, Argentina’s terms of trade index—measuring the price ratio between exports and imports—only dipped below the 2004 baseline once, in 2005, while peaking in 2012.

The 2024 reading not only came in lower than in 2023 but also fell below 2022 and 2021 levels. However, it remained higher than during the 2014–2019 period.

The impact of terms of trade is calculated as a hypothetical measure that quantifies the gains or losses in trade value if export and import prices from a reference year had remained unchanged.

Terms of Trade Improved in Q4 2024

While export and import prices trended downward throughout 2024, terms of trade improved by 0.9% year-over-year in the fourth quarter, driven by a 3.6% drop in import prices, which outpaced the 2.7% decline in export prices.

Over the year, Argentina’s export price index reflected fluctuations across key sectors. Prices for primary products, agricultural manufactures, and fuel & energy declined in at least three quarters. In contrast, industrial manufacturers saw positive price movements starting in the second quarter, partially offsetting the overall decline.

Source: Ámbito – Argentino

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