Introduction
In recent months, various indicators have signaled a cooling of retail trade, fragile demand, and increasingly concentrated consumption on essential goods. This scenario significantly impacts the productive fabric, particularly small and medium-sized enterprises (SMEs).
The Current State of Argentine SMEs
Argentine SMEs have not been a source of good news. In the last few months, different indicators have shown a slowdown in retail trade, fragile demand, and increasingly concentrated consumption on essential goods. This situation directly affects the productive fabric.
In this context, the third-quarter 2025 Observatorio Pyme Coyuntura Report once again raised red flags, confirming that industrial SMEs not only continued in recession but also deepened their loss of market share compared to foreign competition, predominantly from Chinese origins.
Market Share Loss to Imported Goods
According to the survey, 37% of industrial SMEs reported reducing their presence in the local market due to foreign competition, surpassing 33% from the previous quarter. The Observatorio Pyme highlighted that this level represented a “historical maximum” for the series starting in 2007, especially concerning low sales dynamics.
Among the companies identifying a concrete threat from imports, China consolidated as the primary origin, accounting for 73.3% of responses. The report emphasized that market share loss occurred not in an expanding demand scenario but amidst a recession, amplifying the impact on production and employment.
Prolonged Period of Activity Decline
Ten consecutive quarters in decline
External pressure added to a prolonged cycle of activity decline. The survey showed that manufacturing SMEs experienced their tenth consecutive quarter of contraction, with a 4.1% accumulated production drop by the third quarter of 2025.
Employment followed this trend. Although the pace of decline moderated, the sector still saw a 4.6% interannual drop by the end of the third quarter.
The third-quarter 2025 Observatorio Pyme Coyuntura Report was based on a survey conducted between September 29 and October 23, a period influenced by Argentina’s midterm legislative election process.
Key Questions and Answers
- What is the current state of Argentine SMEs? Argentine SMEs are facing a challenging environment, with retail trade slowing down and consumer demand increasingly focused on essential goods.
- What is the main issue highlighted in the Observatorio Pyme report? The report indicates that industrial SMEs are in recession and losing market share to foreign competition, primarily from China.
- How significant is the market share loss to Chinese imports? 37% of industrial SMEs reported reducing their local market presence due to foreign competition, with China accounting for 73.3% of identified threats.
- What is the extent of the production and employment decline in manufacturing SMEs? Manufacturing SMEs have experienced ten consecutive quarters of decline, with a 4.1% accumulated production drop and a 4.6% interannual employment drop by the third quarter of 2025.
