Argentina Achieves Record Trade Surplus in 2024 Under President Milei
Economic reforms lead to historic surplus and significant reduction in inflation
In 2024, Argentina recorded its largest trade surplus in history, estimated between eighteen and nineteen billion dollars, surpassing the previous record of sixteen point eight-nine billion dollars set in 2009. This marks a significant turnaround from a seven point nine-four billion dollar trade deficit in 2023.
The surplus is attributed to President Javier Milei's policies aimed at boosting energy and grain exports.
Leveraging the Vaca Muerta shale reserves and favorable weather conditions, Argentina enhanced its exports of processed soy oil, meal, corn, wheat, and beef.
Inflation also saw a notable decline, decreasing from nearly three hundred percent in April 2024 to one hundred seventeen point eight percent by the end of the year.
Monthly inflation rates dropped to two point seven percent in December, the lowest since July 2020.
Analysts anticipate a narrowing of the trade surplus in 2025 due to increasing imports, currency appreciation, and the removal of import taxes and restrictions.
Projections suggest the surplus could reduce to approximately forty percent of the 2024 figure.
President Milei's administration continues to implement economic reforms, including slowing the rate of peso devaluation to one percent per month starting February 2025, following a period of two percent monthly devaluation in 2024. This strategy aims to consolidate the reduction in monthly inflation observed over the past year.
The surplus is attributed to President Javier Milei's policies aimed at boosting energy and grain exports.
Leveraging the Vaca Muerta shale reserves and favorable weather conditions, Argentina enhanced its exports of processed soy oil, meal, corn, wheat, and beef.
Inflation also saw a notable decline, decreasing from nearly three hundred percent in April 2024 to one hundred seventeen point eight percent by the end of the year.
Monthly inflation rates dropped to two point seven percent in December, the lowest since July 2020.
Analysts anticipate a narrowing of the trade surplus in 2025 due to increasing imports, currency appreciation, and the removal of import taxes and restrictions.
Projections suggest the surplus could reduce to approximately forty percent of the 2024 figure.
President Milei's administration continues to implement economic reforms, including slowing the rate of peso devaluation to one percent per month starting February 2025, following a period of two percent monthly devaluation in 2024. This strategy aims to consolidate the reduction in monthly inflation observed over the past year.
