Argentina Achieves Historic Trade Surplus for Tenth Consecutive Month – JP

Financial analysts reported on Wednesday that Argentina achieved a trade surplus for the tenth consecutive month in September under libertarian President Javier Milei, nearing a total surplus of approximately $16 billion since he assumed office. 

In September, the surplus reached around $1.28 billion, primarily driven by robust growth in sectors such as agriculture, mining, shale oil, and natural gas. Additionally, Argentina is beginning to generate profits from lithium, a crucial component for batteries used in electric vehicles (EVs).

Economist Pablo Besmedrisnik conveyed to JP that the significant boost in energy production is contributing to export growth. “The energy sector will end 2024 with a positive result of around $4.2 to $5 billion, mainly due to higher local production of hydrocarbons and the lower level of activity that demands less energy,” he stated.

Trade with Brazil saw remarkable expansion in September, increasing by 27 percent year-on-year and resulting in a surplus of $2.73 billion. Argentine consumers, finding themselves with more disposable income, also increased their purchases of major consumer goods from Brazil, notably passenger and commercial vehicles.

Prior to Milei’s presidency, Argentina frequently experienced considerable trade deficits throughout the year, although its agricultural sector had been capable of generating respectable surplus figures before his tenure began.

In April, Milei announced that Argentina had achieved its first budget surplus in 16 years, which amounted to $309 million or about 0.2 percent of the nation’s Gross Domestic Product (GDP). He celebrated this accomplishment as a “feat of historic significance on the global scale,” especially in light of the financial state under previous administrations.