This complex scenario brought a series of difficulties to the local economy, especially in terms of inflation and energy imports. In fact, Economy Minister Sergio Massa submitted a report to the IMF detailing that the escalation of the war cost Argentina some US$5 billion in 2022. But the international context also provides a great opportunity.
The agro-industrial sector had record prices for all the exports of the soybean, corn and wheat complex. Despite the difficulties in completing the settlements in the first half of the year due to the tension with the exchange gap, they became a locomotive that represented more than 45% of total foreign sales.
The world demands food. The sectoral challenge that arises for the future has to do with the ability to accelerate the level of investments, increase the offer and add value to take advantage of the opportunity. According to official sources anticipated to this medium, the Government plans to discuss in the extraordinary sessions of Congress a bill agreed with the Agroindustrial Council that grants tax benefits to investments and to those who take a leap in the value chain.
According to data from the Foreign Ministry, in the period from January to November 2022, exports grew by 15.3% compared to the same period in 2021 and exceeded the previous maximum mark that had been reached in 7.2%. 2011. According to the last INDEC report that collected data up to October, there were records in prices but also in quantities. Exports of manufactures of industrial origin grew 19.3%, with an increase in the quantities exported of more than 5%, and registered the highest value since 2013.
In industry, the automotive sector had a decisive contribution. The president of Toyota, Gustavo Salinas, highlighted the performance of the company that led to the incorporation of a third shift for the first time in 25 years. In addition to projecting an improvement in the indicators for next year, he specified that foreign destinations represent 83% of the company’s market and that by 2023 it is expected to maintain a similar mix “with more than 80% for export.” Other terminals such as Ford, Renault and Volkswagen have ongoing investments to improve their export capacity.
The contribution of the oil sector was also relevant. Exports doubled in 2022. There was an increase in both prices and quantities exported. The main destinations of the complex’s exports were: the United States (30.7%), Brazil (15.4%) and Chile (11.4%). The expectation is that energy, thanks to Vaca Muerta and the Néstor Kirchner gas pipeline, will acquire a weight similar to that of agribusiness in the coming years. Also in extraordinary, the Executive prepares two bills, one for the installation of an LNG plant and its commercialization and another for the development of hydrogen production in the country.
For their part, knowledge-based services set a record. They exceeded pre-pandemic levels by 17% with strong growth in business services (29% year-on-year) and in telecommunications, computing and information (15%). The Government hopes that in 2023 there will be a new export leap thanks to a project that seeks to dump part of the activity that today moves in an informal circuit due to the exchange gap to the official channel.
The one that ended was also the year of lithium, whose exports between January and October tripled compared to the same period in 2021. Mining, which is today one of the sectors that attracts the highest level of investment, has been growing at a rate of 30 % YoY for shipments of gold, silver, copper and lithium. The expectation is that in the next twelve months the growth in activity will continue.
Facing 2023, Foreign Minister Santiago Cafiero launched the National Export Promotion Plan. The initiative contemplates carrying out 305 external trade promotion actions, 80 missions, 60 sector positioning actions and attendance at 130 international fairs. The focus will be on increasing the presence of Argentine products in Latin America and the Caribbean. Government estimates anticipate a new export record that would be around US$105,000 million despite the effects of the drought.
Source: Ambito
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