Export boom in Argentina: Foreign sales reach US$58.276 billion in 9 months
RIO DE JANEIRO, BRAZIL – The phenomenon enabled a large dollar inflow in the first half of the year, which along with the International Monetary Fund (IMF) transfer in the form of Special Drawing Rights (SDRs), were key for the Central Bank to close the year with more international reserves in its coffers.
Despite the government and the Central Bank’s satisfaction with the strong dollar inflow, the increase in imports in terms of volume exceeds the level of activity, caused by companies’ decision to accumulate stocks ahead of the expected devaluation.
The volume of exports increased by 19.7% year-on-year in the third quarter, reaching its highest level in the past 10 years. In the first 9 months of the year, exports totaled US$58.276 billion, according to INDEC.
Measured in dollars, exports increased by almost 40% in the first 9 months of the year. However, 70% of exports are agricultural products, which means that a greater share of manufacturing and information industries is lacking. Progress will be made on this point in the coming months, notably with the approval of the new hydrocarbons law.
The rise in international prices of agricultural products has increased the value of Argentine exports, according to a report by the consulting firm DNI. However, analysts doubt that high prices for soybeans and other key commodities will be repeated in 2022, as some international prices have dropped in recent weeks. Still, soybeans are up 22% year-on-year in October, prices unseen since 2012.
In terms of sales volume, the third quarter saw year-on-year increases in industrial products (31.9%), basic materials (27.9%), fuel and energy products (10.8%) and agricultural products (6.4%), driven by China and Brazil’s rebound and higher international energy prices. In the manufacturing sector, exports recovered due to the increase in global demand, after being impacted by last year’s pandemic.
Analysts explain that the vulnerability of Argentina’s foreign trade is that the country has been exporting the same thing for a decade and profits always depend on prices. In order to boost fishery exports and increase the dollar inflow, the government last week decided to waive or reduce export taxes on these products.
This measure will affect 64% of the sector’s tariff lines, leaving 33% of products with a tax rate of only 3% or 1%. The modification to the tax regime particularly affects the export tax on skinless hake in packages of less than 1 kilo and inshore fish, whose tax will be abolished.
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
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| IBOV | 172,060.43 | +0.42% | +9.07% | 171,336.99 | — | — | — |
| USD/BRL | 5.58 | +0.00% | +5.92% | 5.58 | 5.58 | 5.58 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 43.55 | -3.11% | +31.17% | 44.95 | 44.52 | 43.30 | 65,089,600 |
| VALE3 | 64.43 | -0.57% | -0.94% | 64.80 | 65.47 | 64.16 | 12,171,000 |
| ITUB4 | 41.72 | +1.26% | +4.25% | 41.20 | 42.09 | 41.55 | 19,415,700 |
| BBDC4 | 14.33 | -1.44% | -26.48% | 14.54 | 14.82 | 14.33 | 45,613,900 |
| BBAS3 | 16.89 | -1.23% | -28.04% | 17.10 | 17.31 | 16.89 | 29,418,100 |
| B3SA3 | 14.80 | +2.21% | +9.39% | 14.48 | 14.92 | 14.59 | 40,245,900 |
| ABEV3 | 15.85 | +0.38% | +16.63% | 15.79 | 15.88 | 15.74 | 21,260,300 |
| WEGE3 | 51.61 | +1.30% | +12.12% | 50.95 | 52.00 | 50.95 | 9,826,200 |
| PRIO3 | 61.47 | +2.42% | +52.53% | 60.02 | 61.99 | 60.50 | 18,937,900 |
| SUZB3 | 53.80 | -1.21% | +15.57% | 54.46 | 54.64 | 53.71 | 7,203,500 |
| RENT3 | 30.24 | +1.51% | -30.08% | 29.79 | 30.77 | 29.93 | 8,008,800 |
| AZZA3 | 15.37 | +4.34% | -46.54% | 14.73 | 15.45 | 14.74 | 3,535,400 |
| CSNA3 | 4.52 | +3.20% | -45.61% | 4.38 | 4.52 | 4.38 | 15,203,500 |
| GGBR4 | 25.25 | -2.25% | +33.60% | 25.83 | 25.81 | 24.98 | 5,425,100 |
| ENEV3 | 27.38 | +1.22% | +41.94% | 27.05 | 27.66 | 27.05 | 7,114,000 |
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