MercoPress. South Atlantic News Agency

Argentina records slight trade balance surplus

Had last year's prices persisted, Argentina's trade balance would be in the red

Although positive, Argentina's trade surplus of US$ 323 million in March 2025 represented a sharp drop from US$ 2,160 million in the same month last year, the National Institute of Statistics and Census (Indec) said in a report released Wednesday.

Imports surged by 38.7% year-on-year, driven by a 47.5% increase in quantities purchased, while exports declined by 2.5% due to reduced primary product and energy exports. Manufactured goods saw growth, particularly in precious stones and metals. Favorable external conditions, rather than structural trade improvements, contributed to the surplus, which would have otherwise been a US$ 174 million deficit.

Overall trade amounted to US$ 12.33 billion, a 14% year-on-year increase, mainly driven by imports, which totaled barely over US$ 6 billion, up 38.7% year-on-year, although with a drop of 8% month-on-month, which marks a pause after several months of growth.

On the other hand, exports amounted to US$ 6.33 billion, a 2.5% decrease from March 2024, explained by a 4.2% drop in volume, partially offset by a 1.8% price increase.

The most affected products were those of the primary sector, with a 16.1% drop, plus fuels and energy, which fell by 13.5%. On the other hand, manufactures of industrial origin (MOI) showed a 13.1% growth, driven by a rise in prices, especially in precious stones and metals.

As for imports, the increase was driven by a 47.5% expansion in quantities, despite a 6% drop in prices. Among the items that grew the most were motor vehicles (107%), capital goods (74.1%), and consumer goods (75.7%), reflecting a recovery in domestic demand and greater dynamism in productive sectors that depend on imported inputs.

Argentina's terms of trade index improved by 8.3% year-on-year, indicating favorable export prices compared to import prices. Despite this, the official report reveals that if last year's prices had persisted, the country would have faced a deficit of US$ 174 million. This implies that the current surplus is largely driven by favorable external factors rather than a fundamental enhancement in foreign trade.