Argentina Faces deindustrialization Concerns as Imports Surge, Shein & Temu See Explosive Growth
Buenos Aires – Argentina’s industrial sector is facing mounting pressure as imports of consumer goods skyrocket, sparking concerns about deindustrialization. Data reveals a dramatic 237% increase in imports categorized as “others” by the INDEC national statistics agency over the past year, fueled in part by the growing popularity of digital platforms like Shein, Temu, Aliexpress, and Amazon.
The surge in imports coincides with persistently low capacity utilization rates within Argentina’s manufacturing base, remaining stagnant between 58-61% – the lowest levels recorded since the pandemic. This translates to roughly 40% of the country’s productive capacity sitting idle.
The textile industry is especially affected, with installed capacity averaging just 43% so far in 2025, a record low outside of pandemic-related disruptions. Private employment in the sector has also declined, falling by 12.7% (-16,000 jobs) since August 2023, according to Econviews.
Paolo Rocca, CEO of Techint, Argentina’s largest industrialist, highlighted the scale of the import increase, stating, “Last year we imported 5,000 washing machines per month, and in the nine months of 2025 the monthly import level rose to 87,000; Something similar happens with imports of refrigerators, which went from 10,000 to 80,000 per month.” Rocca warned that this trend is forcing companies to consider either closing production or shifting to distributing imported goods.
While the government has pointed to rising imports of capital goods as a positive sign of increased investment, analysts express concern that the growth in consumer goods imports far outpaces that of capital goods – even after recent exchange rate adjustments.
Martín Polo,chief economist at Cohen,noted that the INDEC data suggests domestic demand isn’t as depressed as previously thought,but “The bad thing is that if one disaggregates imported consumption it grows more than national consumption.”
Francisco Rittorto, an economist at ACM, attributes the October jump in consumer goods imports to a “recomposition of consumer imports” following a year of restricted purchases and a low comparison base, adding, “So much in income as in employment it truly seems that we have to wait longer to see a recomposition.”
