Argentina experiences tighter trade surplus and slower industrial growth in May
Argentina’s trade surplus was 1.5 billion dollars in May, compared to 1.71bn a year earlier according to the official stats office Indec, while industrial production in the same month continued to languish, according to the medium estimate of more than 50 banks, economic research firms and universities surveyed by the Central Bank.
Exports fell 7% from the same month a year earlier to 7.6 billion, while imports fell 5% to 6 billion over the same period, the agency said in Buenos Aires on Thursday.
Industrial production has been hit by the slowdown in top trading partner Brazil, cooling growth at home and government restrictions on imports took their toll.
The government of President Cristina Fernandez is expected to report a 0.8% year-on-year increase in May's industrial production index, according to the median estimate surveyed by the Central Bank of Argentina.
Industrial production is likely to stagnate through the second half of the year, research firm Orlando J Ferreres & Asociados said in a recent report. OJF blamed the slowdown on cloudy economic prospects that are hurting investment, energy shortages, import controls and the contraction in Brazilian manufacturing.
Argentine manufacturers shipped almost 12 billion dollars in goods to Brazil last year. Brazil's industrial sector contracted 3.0% in the first quarter of 2012, however, hitting demand for Argentine imports hard.
According to OJF's own manufacturing index, May's industrial production was down 1.5% on the year, led by a sharp drop in vehicle production.
Vehicle output during the first five months of the year fell 10.5% on the year and was down 24.4% in May, according to the auto-maker association Adefa.
Vehicle exports during the first five months of the year were down 26.5% on the year, with most of that decline blamed on Brazil, which usually buys over three quarters of Argentine vehicle exports.
The decline was clear in Argentina's May trade data. Industrial exports in May fell 12% to 2.13 billion dollars, led by declines in chemicals and automobiles, Indec reported Thursday.
Metalworks are also suffering. May steel production fell 7.5% on the year and 4.5% on the month while iron output was down 11.3% on the year and 9.8% on the month, according to the steel maker chamber Acero.
Manufacturers also face soaring costs as wages and input prices rise sharply. On Thursday Argentina's teamsters union agreed to lift a strike after reaching an agreement with truck owners to raise wages by 25.5% in three steps over the next nine months.
That's in line with the annual inflation rate as estimated by most private economists and is likely to serve as a yardstick for other union wage demands.
There's also a shortage of parts, supplies and equipment caused by the government's import restrictions.
President Cristina Fernandez has resorted to harsh import barriers to protect the country's hard-currency reserves, which are a key source of funding for her government.
Meanwhile, growth at home is rapidly cooling. Argentina's economic expansion virtually ground to a halt in April, with the monthly economic activity indicator rising just 0.6% on the year and falling 1.6% on the month.
The central bank's latest GDP forecast puts growth at about 6% in 2012. But many private-sector economists have trimmed their outlook and now expect little if any growth
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CFK had an embarrassing defeat yesterday, BCRA reserves are depleted, peso is on a free fall ( although I don't think you've seen anything yet), electricity companies are all bankrupt most likely will have to be nationalized, most Banks are insolvent, most consumables (food toiletries) went up 9% yesterday, they hope inflation stays under 40% this year ( it may not), car mfgs laying off 1000s, miners laying off and not exporting,...etc etc etc
I wonder where the U$ 14B will come from to pay for the nat gas they need???
CFK should write a book on how to destroy a country in only 8 years.
I hope the CFK administration are reading your suggestions, and follow suit because it would cause a catastrophe of biblical proportions. The subsequent collapse of the value of the Peso would be astronomical as the printing presses almost catch fire printing up AR$ 1.620 trillion. Further import restrictions would shut down most industry. Mining and agricultural exports would cease if they had to cash in their import Dollars in 15 to 20 days because they would have to carry the burden for this money as they probably would get paid in 90 to 180 days by the purchaser of their goods. Overall an awesome recipe for failure, and ideal for people like me who were too young to cash in on the 2001 disaster. I always wished I had been capitalized enough to buy a nice apartment in Barriloche, now I'm ready to buy as soon as the market crashes and hits bottom.
Thanks CFK and friends.
Have you taken your medication today? Sounds like your delusional and living in a fantasy world.
National strikes ,35% inflation and rising ,energy crisis, peso collapsing,corruption, rising crime rates, more debt default ,cacerolazos ..........Cristina,Boudou,Maximo,Timmerman,A.Castro ....comedy show.
Argentina's in deep sh*t,and nobody's going to help you.Time is running out.
I don't know about her writing a book but I think she has been reading Robert Mugabe's “Economy Destruction for Dummies.”
If she ever writes a book it will probably be about how she is innocent of crushing Argentina's economy and reputation around the world. No doubt this will be a 8000 page incoherant whine-fest blaming everyone but her (most likely focusing the Falklanders and the english pirates).
1, but dollars at a dollar each,
2, sell then at 2 dollars each,
And double ya profits,
The only drawback, is who where will you find any mugs, who will pay double the price,
We are sure CFK can solve this problem,
There are millions who adore her [BK ]as an example,
They will buy the inflated dollars,
[just trying to help] lol
.
Jun 22nd, 2012 - 10:06 am
If Kretina reads your post, we will be free of her in 24 hours!!!
Little wonder that what passes for a government in RG have got their knickers and knackers in a twist over the Falklands. 3,000 people sitting on enough moola to keep Crown Prince Fat Maxie in cup cakes and knee replacements for the rest of his life.
How i ruined the lives of 40MM people
We should mourn her final departure while also cheering to the rafters
Chuckle chuckle.
No, I was being facetious but it's nice to rub the Malvinistas' noses in it after all the tedious crud they've been spouting. “JAJAJAJA UK IS FINISHED!”, “Kelpers go home” etc.
We'll all know when it's over because the signal won't be subtle.
That's a shame.
Nothing like giving your enemies a green light.
#16 Hubris much? She's not gone and I can't seriously think why she's have any plans to
1, Venezuela=4/5*
2, Peru =7/4
3, Bolivia =7/2
4, Cuba =3-1
5, North Korea =7-1
6, Iran =10-1
7, Iraq 12-1
8, afghan, 16-1
9. Pritchard islands 25-1
10,DR Congo 33-1
11, Somalia. 33-1
12, Angola 50-1
.
They thought these ridiculous import controls would give them a surplus but they didn't take into account the increased inflation it brought, the downturn in production and consumer purchases or the decreased exports!
So the BCRA reserves instead of increasing the minimum U$10B they need this year are decreasing. Argentina is effectively bankrupt they just don't know it yet. But they will shortly.
So what happens when all of a Banks, Pension Company, Business, etc have all of their reserves in a worthless bond....hmmm I wonder do you print more bonds and pesos? That doesn't sound right...hahahahaha
This imminent crash will make 2001 look like a boom.
Scary as CFK without clothes
Boo
Do I hear the presses printing Patacones??
click click click print print print
I hate to say I told you so...no wait no I don't... hahahahaha
This collapse will be SPECTACULAR!
How do you think the general collapse will unfold?
If they get large scale demonstrations from unions and general citizens, heaven only knows how CFK will react. Hope she doesn't send in the Hitler.......sorry.....Campora Youth to back up the police.
President Cristina Fernández de Kirchner assured tonight that “Argentina does not condone the coup’d etat in Paraguay” as she addressed reporters at the Government House.
Fernández de Kirchner also said that “appropriate measures” will be taken at next week’s Mercosur Summit, which will take place in Mendoza province. ” would that be before or after her own people march to Plaza de Mayo..
www.buenosairesherald.com/article/104259/argentina-will-not-condone-the-coup-detat-cfk
Your statement makes no sense. ElaineB's does, but yours doesn't.
Reread what you have written, and you will see that it is nonsensical.
However, BK, when the poor workers rise up in revolt against this evil government who has stolen all their money and ruined their lives, I'm sure you will be supporting them. After all, that's what self-proclaimed socialists like you do isn't it?
When you're beloved CFK and her inept cronies have been lynched in the Plaza de Mayo, will you be cheering on the poor downtrodden workers?
Bang Bang Bang on the pots people.
BTW do coups have a domino effect anymore?
Could we stop them?
Actually the UN would have to stop them, because the UN has put strict controls on emigration to the Falklands to prevent one side or the other from 'stacking the deck'. At most they could be given refugee status, but would be removed sooner, rather than later back to the mainland.
Argentine 'boat' people would be turned away, with a terse 'go to Uruguay or Chile', which are the most logical choices.
Besides, they'd have to get to the Falklands first, and despite what the Malvanistas believe, it isn't just off the coast of Argentina, and any 'boat' people would have to brave 300 miles of South Atlantic ocean, which is unpredictable in the summer and even more so in the winter.
They'd have to be really brave to do that and most people would only attempt it if they had no other option, which in the case of Argentina they would: Chile, Uruguay, Brazil, Boliva etc... The chances are they wouldn't get more than a few miles from the coast of Argentina before needing rescue.
Idiots have a hard time with logic when all of their beliefs are proven wrong huh?
Ding Dong...The witch is.... is that a helicopter I see going to Olivos?
Good to know, but there are plenty of underused Argie fishing boats tied up in port.It wouldn't happen until the summer anyway.The UN is a bit of a toothless wonder.
1 Fishery protection boat and a destroyer aint enough.What about ex pats if it turned nasty?(700,000 I know most would go to UK).But it could be a substantial number.
You cant rule anything out with that crazy country and have strategies in place.
Does CFKC support democracy? Is it democracy when a substantial proportion of voters are bought? CFKC rules over a Kleptocracy and now she has bled the country dry she will flee. I think the cancer that wasn't cancer was going to be her exit story but that one didn't pan out. A less dignified exit is on the cards now.
Argentina's economy is always collapsing. It happens about once every 10 years or so. They can't help themselves, they keep voting in corrupt people, whose only goal appears to be to grab as much money as they can before it all implodes again.
I doubt this would be any different than 2001, they'll default yet again on the debts and blame everyone in the world except themselves. That appears to be Argentina's standard operating procedures. There was no mass exodus then, and I doubt there'd be one now.
It's a shame really, 'cos they produce plenty of food and have enough natural resources to make them one of the richest countries in the world, they are just completely inept at developing these resources, and steal foreign owned companies that could develop these industries for them.
Argentina is its own worst enemy.
What a bizzare conspiracy theory! Can you elaborate on why it didn't pan out, did she get cold feet? Why would she ever have been wanting to make an exit just after her sensational and historic election victory?!
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