October 18, 2024 (Globalinvestorideas.com Newswire) Globalinvestorideas.com, a go-to platform for big investing ideas releases market commentary from Quasar Elizundia, expert research strategist at Pepperstone.
“Argentina continues to show positive signs in its foreign trade, with the new September trade balance report expected to mark the tenth consecutive month of surplus. According to estimates, the trade surplus would reach $1.276 billion, consolidating a total of over $16 billion so far this year. This result reflects the impact of the economic policies of Javier Milei’s government, which has emphasized strengthening exports as a way to stabilize the economy.
The growth in exports, primarily driven by agribusiness, mining, and hydrocarbons, has been key to the sustainability of this surplus. The Incentives for Large Investments Regime (RIGI) has also favored oil and gas exports, contributing significantly to this positive outlook. Despite a slight increase in imports, they remain significantly lower compared to the same period in 2023, reflecting a moderate recovery in domestic demand.
For Argentina, this trade surplus is good news, as it not only reduces pressure on the Argentine peso, but it could also have a stabilizing effect on the runaway inflation that has plagued the economy in recent years. The inflow of foreign currency generated by exports provides some relief for the local currency, which could help control the devaluations that have undermined confidence in the peso.
The Milei government sees this data as an opportunity to continue building a narrative of economic recovery, something vital amid the challenges facing the country. However, while the surplus is a step in the right direction, long-term sustainability will depend on broader, structural reforms that strengthen domestic productivity and macroeconomic stability.”
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