Juan Marcos Pollio Argentina recorded a record trade surplus of US$3.5 billion in May. The trade balance accumulated a surplus of US$11.7 billion during the first five months of 2026, surpassing the total achieved in all of 2025 (US$11.2 billion).
The result was driven by sustained export growth, which also reached a new all-time high of US$9.5 billion, supported by a sharp increase in energy and agricultural exports.
Through May, total exports amounted to US$40.3 billion, exceeding the level recorded during the same period in 2025 by 24.3%.
Economy Minister Luis Caputo welcomed the figures, noting that the energy trade balance posted a surplus of US$1.5 billion, which he described as the largest positive balance in the country’s history.
Energy exports accounted for 18.3% of total exports, equivalent to US$1.7 billion. This represented a 167% increase compared to the same month last year, making energy the fourth-largest export category.
Industrial exports ranked third, rising 20.1% to US$2.3 billion, followed by primary products, which totaled US$2.4 billion, and agricultural manufactures, which reached US$2.9 billion.
The May data released by Argentina’s national statistics agency, INDEC, showed the continuation of the trade surpluses recorded since President Javier Milei took office. The figures also highlight the growing role of the energy sector in Argentina’s exports and trade balance.
China was Argentina’s leading trading partner in May. The country posted a US$347 million trade surplus with the Asian nation, driven by a 78.9% surge in exports and a 7.7% decline in imports.
Brazil ranked second, with Argentina recording a US$106 million trade deficit, despite a 26.5% drop in imports. The next three spots were occupied by the European Union, the United States, and Paraguay.
However, this result was also partly driven by a decline in imports. During May, imports fell 7% year-over-year to US$6 billion.
Weak industrial activity reduced import demand
The decline in demand for foreign goods is largely explained by the manufacturing sector, which has historically been the largest importer of goods and has been hit by weaker domestic consumption and increased competition from imported products.
Recent industry data pointed to continued weakness in manufacturing activity. According to the latest survey by the Argentine Industrial Union (UIA), industrial activity fell 5% year-over-year in May and 0.8% month-over-month.
At the sector level, 12 of the 16 industries surveyed recorded declines compared to May 2025, while 11 sectors posted monthly contractions.
Among the sectors experiencing double-digit year-over-year declines were textile products (-22%) and machinery and equipment (-20%), due mainly to lower production and sales, particularly in agricultural machinery.
The list was rounded out by apparel, leather, and footwear, which remained 16% below their May 2025 levels. The report described them as among the weakest-performing sectors, operating at “historic lows due to weakened domestic demand and increased competition from imports.”
