Friday, January 25th 2013 - 07:43 UTC

Argentina’s industrial production down in 2012, first time in a decade

Industrial output dropped 1.2% in 2012 compared to the volume registered in 2011, Indec national statistics bureau reported on Thursday. The Industrial Monthly Estimator (EMI) stated that industrial production dropped 3.4% in December when compared to the same month of 2011

Shrinking automobile output and drought-hit grain harvests had their impact

This would be Argentina's industrial production first decline since a political and confidence crisis a decade earlier melted the economy and saw Argentina default on its sovereign debt.

Factory output fell in 2012 due to shrinking automobile and basic metals output as well as weak domestic and external demand, Indec said.

The decade long boom started to cool last year because of sluggish global conditions, high inflation, a drought-hit 2011-12 grain harvest, and the impact of government import and currency controls on investment.

In December, industrial production fell by a larger-than-expected 3.4% from a year earlier. Factory output dipped 0.6% in December compared with November, seasonally adjusted, the government said.

The government said car-making fell 6.6% in 2012 while the production of basic metals, including raw steel and primary aluminium, shed 8.7%. In December, the decline in industrial production was fuelled by a 14.6% drop in basic metals and a 9.5% decrease in construction materials.

The construction industry has been hurt by a virtual ban on dollar purchases that roiled the real estate market, where most transactions were made using the US currency.

In related news Argentina’s trade balance ended 2012 with a surplus of 12.69 billion dollars, which is 26.7% higher than in 2011, also according to Indec. Exports totalled 81.2bn dollars, with a drop of 3% while imports reached 68.5bn, down 7%.

In 2011 the trade balance surplus was just over 10 billion dollars with an 11% drop compared to 2010.

The 2012 Budget bill forecasted a trade surplus of 8.6bn dollars with exports reaching 90.8bn dollars and imports, 82.2bn dollars. This year the surplus estimate is 13.33bn dollars with exports expected to climb to 110.7bn dollars.

14 comments Feed

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1 Idlehands (#) Jan 25th, 2013 - 10:49 am Report abuse
No worries - just print a couple of trillion pesos and give the cars away at the next election.
2 Optimus_Princeps (#) Jan 25th, 2013 - 11:09 am Report abuse
She will just deny it and try to have INDEC cook up some growth figures.
3 cornelius (#) Jan 25th, 2013 - 11:56 am Report abuse
Argentineans are masochist you keep electing people that will punish you all must be sinners!
4 yankeeboy (#) Jan 25th, 2013 - 12:03 pm Report abuse
The economy has been in recession since Nov 2011. It must be really bad if Indec is showing a negative number know. You can only fudge the numbers so much.
5 Conqueror (#) Jan 25th, 2013 - 02:48 pm Report abuse
I'm not sure I get this. Production is DOWN. Harvests are DOWN. If production goes DOWN, how can you export MORE? Imports of energy, at least, are almost certain to go UP. And yet the “surplus” is supposed to go up by 4.7 billion dollars? Exports are supposed to go up by 20 billion dollars? How does that work? Do the argies just increase the price of everything?
6 Nostrolldamus the 8th (#) Jan 25th, 2013 - 03:27 pm Report abuse
Key word: first time in 11 years.

I think there's been at least three RECESSIONS in Europe and two in the USA in that same time frame!

hahahahaha... these morons and their asinine analysis “oh Argentina SUCKS, look industrial production down.... after being up 11 years in a row”.

What kinda fool one must be to not realize how STUPID such thinking is!
7 yankeeboy (#) Jan 25th, 2013 - 03:41 pm Report abuse
Gads Toby you are a fool. Argentina has been in recession for 1 1/2 yrs but it is so bad now not even Indec can fudge that much.
I read a nice article today that the farmers might be considering holding back most of the Soy crop this year until the HUGE devaluation that everyone knows is coming actually happens.
10/1 coming soon to a kiosco near you
Wait until you see what that does to inflation!
I can't wait to watch from afar
8 ChrisR (#) Jan 25th, 2013 - 04:17 pm Report abuse
Just when the economy is tanking very badly (if you believe INDEC you must be an argie) TMBOA manages to fuck it up well and truly.

Has she ever read a book on economics and the production of wealth? I suspect not unless of course it was written by North Korea.
9 ElaineB (#) Jan 25th, 2013 - 05:18 pm Report abuse
“The government has decided to revoke non-automatic licensing requirements which had been placed on certain products before they could be imported into Argentina for consumption, ” I guess CFKC has finally realised her plan has caused all kinds of damage to the Argentine economy. Still, at least the government was able to rake in the bribes for a while.

CFKC said today:
“People should start to use their power as consumers, because if you don’t defend yourself, nobody is going to defend you,”

You are on your own Argentines.
10 yankeeboy (#) Jan 25th, 2013 - 05:25 pm Report abuse
Elaine, just because they put out a press release doesn't mean anything has changed. I am sure it is to pacify Brazil and Uruguay's recent complaints.

They have no U$ to pay for the imports so nothing will ever really change.
11 Conqueror (#) Jan 25th, 2013 - 08:14 pm Report abuse
@6 Do you understand what “slap-happy” means. Which part of you is being slapped? INDEC hasn't been believable since at least 2007. Who's a mug? Go isolate yourself. Would you like a list of volcanos? Or would they vomit you back?
12 cornelius (#) Jan 25th, 2013 - 09:20 pm Report abuse
Why are you arguing about the Argentinean economy none of the Argentinean economist are professional none are credible all are ideologist and further more why a stupid ignorant corrupt president like KC will surround herself with people who can challenge her on all her stupidities.
Most of the people who comment on the Argentinean economy in this forum are wasting time because I see most of the comments are good and rational the Argentinean government is irrational and run on depleted hormones and Botox from CK.
13 malicious bloke (#) Jan 25th, 2013 - 09:49 pm Report abuse
Coriolis forces and socialism.

Argentina's economy circling the the wrong direction.
14 RICO (#) Jan 26th, 2013 - 06:02 pm Report abuse
There are competent Argentine economists unfortunately they will be prosecuted if they say anything the government dislikes. Welcome to the New Argentina. Beacon of Light.

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