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Montevideo, September 21st 2018 - 00:50 UTC

Argentina's economic activity up 0.6% in December; industrial production down in January

Monday, March 2nd 2015 - 06:17 UTC
Full article 34 comments
The December activity hike is explained by an increasing internal demand boosted by payment plans and tourism, said the Indec release. The December activity hike is explained by an increasing internal demand boosted by payment plans and tourism, said the Indec release.

Argentina's economic activity index, EMAE, increased 0.6% in December 2014, compared to the same month of 2013, according to the country's Indec stats office latest release. This marks the third consecutive monthly growth, after previous negative results.

 During the last quarter of 2014, economic activity went up by 0.1% in October, by 0.2% in November and by 0.6% in December.

Service and goods production increased 0.1% in December 2014, compared to the previous month. The hike is explained by an increasing internal demand boosted by payment plans and tourism, said the Indec release.

The monthly EMAE economic activity index, is a close proxy for GDP.

However industrial production continued on a downward path for the 18th straight month in January, according to figures released by Indec. Manufacturing was 2.1% down in January in the yearly comparison, although it showed a 1.1% improvement when compared to December.

As has become the norm, the decline was led by the automobile sector, which saw a decline of 28.8%. The sector with the second-largest decline was clothing, with a 10.8% drop, followed by plastics (-9.5%) and printing (-5.6%), while companies that provide construction inputs saw a few signs of recovery (5.6%).

The steady trends seen in manufacturing are expected to continue by most industry leaders, as 84.1% of those interviewed by INDEC said they were not awaiting demand improvements for February.

In its report, INDEC highlighted that car exports during January were down 61.1% according to the Association of Car Manufacturers (ADEFA). ADEFA has also pointed out that new car sales are 27% down in the same period.

Throughout Latin America, countries have been renegotiating their trade agreements in the car sector, as demand has dropped across the region.

This week Argentine Industry Minister Debora Giorgi came out against México’s proposal, saying it calls for a return “to free trade” to end with quotas, and in her view that would hurt local production and integration in the value-added chain.

“Cristina Fernández replaced free trade with Mexico with administrated trade through a three-year arrangement that expires on March 19. It was successful because it generated fair trade results for more than 150 million dollars that were equally good for both countries. We want to continue that for five more years,” Giorgi said.

Categories: Economy, Argentina.

Top Comments

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  • Enrique Massot

    Economic activity up 0.6 per cent in December?
    Manufacturing 2.1 per cent down in January...“although it showed a 1.1 per cent improvement when compared to December?”
    I had read comments promising the country's imminent implosion, but those numbers got me a bit confused. Anybody up to explain the mystery?

    Mar 02nd, 2015 - 09:25 am 0
  • Briton

    industrial production down ,
    And will go down further as china will bring in its own workers....lol

    Mar 02nd, 2015 - 11:52 am 0
  • Troy Tempest

    @1 Enrique

    How about a proper quote to start,
    “Manufacturing was 2.1% down in January in the yearly comparison,”

    ”car exports during January were down 61.1% according to the Association of Car Manufacturers (ADEFA). ADEFA has also pointed out that new car sales are 27% down in the same period.“

    ”The sector with the second-largest decline was clothing, with a 10.8% drop, followed by plastics (-9.5%) and printing (-5.6%), “

    ”The steady trends seen in manufacturing... 84.1% of those interviewed by INDEC said they were not awaiting demand improvements for February”

    Looks like a cash injection ( more borrowing) from China helping to re float Argentina
    http://www.focus-economics.com/countries/argentina

    Mar 02nd, 2015 - 11:55 am 0
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