Argentina is a developing country and has the second-largest economy in South America. It is the largest Spanish-speaking country in the world. Argentina has a history of producing great leaders, literature, and culinary innovations. Argentina’s picturesque beaches and mountains are a favorite among travelers.

The economic history of Argentina is very distinct when compared to other nations of the world. While most countries' growth rates plateau when they achieve developed status, the Argentine economy shrank. So much so that the Argentine Paradox contravenes most economic theory and bewilders the brightest economists.

In 1900, Argentina was one of the top five economies of the world. It was leaps and bounds ahead of the big empires of Europe. But after 1929, the economy declined rapidly due to poor human development and low trade levels.

Today, Argentina is grappling with skyrocketing inflation (58%) and extreme poverty levels (40%, as of 2020). Yet the nation offers unparalleled import and export opportunities for traders around the world. 

Argentina Export Analysis 

Argentina’s exports (goods and services) were valued at $64.59 billion in 2020. The nation is an agrarian economy and most products are sold to South American nations besides the United States and China. Argentina is the world’s leading producer and exporter of Soybean related products. It is also known for its corn, wheat, and other foodgrains production.

Argentina’s export economy is sustained by its long coastline (4700 km) and inland transit to other South American nations. These factors make up for Argentina’s geographic remoteness.  

Argentina’s Top Export Commodities, as of 2020 
1. Soybean Meal ($7.89 billion) 
2. Corn ($6.46 billion) 
3. Soybean Oil ($3.9 billion) 
4. Soybeans ($2.31 billion) 
5. Delivery Trucks ($2.3 billion) 

Argentina’s Top Export Destinations, as of 2020 
1. Brazil ($7.67 billion)
2. China ($5.41 billion)
3. United States ($3.47 billion)
4. Chile ($2.91 billion)
5. Vietnam ($2.87 billion)

Argentina Import Analysis

As of 2020, Argentina’s import volume stood at $52.77 billion (World Bank Data). It’s the 54th highest importing country in the world. Argentina’s imports are characterized by its developing nature. Most imports are for the soybean processing industry, and raw materials for the country’s massive machinery manufacturing sector. 

The fulfillment of consumer demand also drives Argentina’s imports. 

Argentina’s Top Import Commodities, as of 2020
1. Cars ($1.77 billion) 
2. Soybeans ($1.76 billion) 
3. Vehicle Parts ($1.71 billion) 
4. Refined Petroleum ($1.25 billion) 
5. Petroleum Gas ($1.17 billion) 

Argentina’s Top Import Destinations, as of 2020
1. Brazil ($8.57 billion)
2. China ($8.34 billion)
3. United States ($5.02 billion)
4. Germany ($2.13 billion)
5. Paraguay ($2.13 billion)

Argentina’s Economic Prospects

The country is plagued by high levels of foreign debt, poverty, and hyperinflation. Argentina’s leaders are in constant touch with the IMF and rely on its support to maintain fiscal health. But investor confidence in Argentina is steadily on the decline. The bond values have sunk to new lows. The peso is struggling and energy imports are on the rise. All these factors are hindering Argentina from maintaining critical foreign currency requirements. The Argentine economy looks headed to missing the goals that IMF had set for it as per the Extended Fund Facility deal of March 2022.
 
The government must introduce higher taxes and tariffs for the private sector. But, these measures must be executed carefully, not to hinder the nation's growth prospects. 

Access the latest Argentina Trade Data compiled by experts at Cybex Exim Solutions. Contact us now at [email protected] or call (+911204517800) and WhatsApp (+9971093718) to begin your trading operations in Argentina.