Argentina Trade Balance Records Largest Surplus in a Year

A recent report from the Central Bank of Argentina has projected a progressively surplus trade balance for the country in the coming years, starting from $22.4 billion in 2024 and reaching a surplus close to $41.8 billion by 2030.

The monetary entity emphasized that the “exports of unconventional crude oil” from the Vaca Muerta field “will perform strongly in the coming years,” driving these positive outcomes along with sales from the agro-industrial sector.

The new transportation infrastructure (pipelines and oil pipelines) “will contribute to replacing imports and unfolding the country’s export potential,” projected the BCRA.

More specifically, the BCRA highlighted that total fuel exports “will increase from $10.4 billion this year to $36.7 billion in 2030.”

During the past year, Argentine exports were led by Agricultural Origin Manufactures (MOA), amounting to $23.825 billion, and Industrial Origin Manufactures (MOI), totaling $20.655 billion, representing 35.7% and 30.9% of total sales, respectively.

In terms of significance, Primary Products (PP) followed with $14.43 billion, constituting 21.6% of the total, and Fuel and Energy (CyE), accumulating 11.8% of foreign shipments with $7.878 billion.

INDEC noted that Argentina’s three most important export products were soybean oil extraction flour and pellets, comprising 12.0% of the share; corn grain (excluding for sowing), representing 9.3% of total shipments; and motor vehicles for freight transport, equivalent to 6.9% of the total.

Regarding markets, Brazil was the primary destination for exports, accounting for 17.8% of the total, followed by the United States and China, with 8.5% and 7.9% of Argentine shipments abroad, respectively.

The pie chart below shows the most exported products transported in containers, shipped from maritime ports from Argentina to Brazil between January and November 2023. The data is from DataLiner.

Exports from Argentina to Brazil | 2023 | TEU

Source: DataLiner (click here to request a demo)

If international prices remained the same as in 2022, the deficit would have been $4.299 billion, as the import value index fell by 5.8% and the export index fell by 9.7%.

Consequently, the country recorded a loss in terms of trade of $3.052 billion.

In the twelve months of 2023, trade – exports minus imports – of the main soy-derived products and by-products left a positive balance of $7.882 billion, compared to the $13.903 billion recorded in 2022, representing a 63.8% annual decrease, primarily explained by the effects of drought on agricultural production.

Meanwhile, the automotive sector registered a deficit of $3.37 billion, surpassing the $2.845 billion deficit in 2022.

Source: Ámbito

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