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Argentina Posts Record May Trade Surplus as Domestic Demand Remains Weak

Export growth driven by energy from Vaca Muerta pushed the May balance higher, signaling strong external earnings despite weak domestic activity.

Overview

  • May trade data released on June 19 showed goods exports of USD 9,537 million and a monthly trade surplus of USD 3,504 million, the highest on record.
  • The energy balance recorded a USD 1,543 million surplus in May as rising oil and gas shipments from Vaca Muerta and lower fuel imports sharply boosted energy exports.
  • Official INDEC figures for April and private reports for May show household spending is still falling, with supermarket sales down 3.7% year‑on‑year, mayoristas down about 5%, and private consumption slipping for a sixth consecutive month.
  • Industry is contracting: the UIA’s estimate shows manufacturing fell about 5% year‑on‑year in May while imports of production inputs have declined for several months and sit roughly 20% below 2023 levels.
  • Economists warn the surplus partly reflects weak domestic demand and compressed input imports rather than a broad recovery, and business surveys show firms are cautious with orders and hiring, creating risk that export gains will not quickly translate into jobs or higher local production.