MercoPress. South Atlantic News Agency

Argentine economy picking up

During February economic activity in Argentina increased 5,8% over a year ago and 1,8% over January according to the latest release from the National Census and Statistics Institute, INDEC. Similarly the first two months of 2003 showed a 5% recovery over the same period in 2002.

However the level of activity is still below March 2002 since the index a year ago was 97,2%, compared to the 94,1% of March 2003 based on primary estimates. Among the most dynamic sectors of the recovery are manufacturing, tourism, construction and agriculture. The Monthly Industrial Estimate in February recorded a 17,4% recovery over a year ago and 1,5% compared to January. Manufacturing represents close to 18% of Argentina's GDP.

Tourism was particularly active, since most Argentines preferred to spend their vacations in their country and a favourable exchange rate attracted many foreigners from Mexico, Chile, Peru, United States and even Europe. Agriculture has been boosted by excellent crops of oil seeds and strong international demand and prices. Julio Rotman head of the Statistics Department of INDEC anticipated that March results will be even better because the economy "has began to steadily pick up, and private construction is playing a key role".

Another encouraging factor is that industrial employment after having dropped consistently during four years has rebounded and for the second consecutive quarter has been positive. Industrial employment in the first Q of 2003 increased 1,9% over the fourth Q of 2002. Mr. Rotman also anticipated that the Industrial Estimate for March is showing signs of robustness with a preliminary 21,4% over twelve months ago.