MercoPress. South Atlantic News Agency

Argentina’s economy still roaring at full speed, say official stats

Foreign trade was the most dynamic sector during August

Argentina’s monthly economic activity index (EMAE) climbed 8.6% in August, compared to the same month of 2010 and 0.6% over July, Indec the national statistics bureau reported Tuesday.

The official data stated that the EMAE index accumulated a 9.1% increase in the first eight months of the year, in comparison to the same time period of 2010.
Foreign trade, domestic demand and manufacturing were the main players behind the August performance said Indec. Imports in the month soared 43% to 7.6 billion dollars while exports totalled 8.3 billion with a surplus of 640 million dollars which is 39% below the same month in 2010.

Sales in the domestic market were up 20% in value compared to August 2010, and 8% in volume. Sales in supermarkets were up 18.5% over a year ago while in the main shopping centres given the abundant consumer credit, sales jumped 33.7%.

Manufacturing in August expanded 5.5%, rather modest compared to previous months but with strong showings in the auto industry, 17%; metal-mechanics 10.2% and 11% in construction related inputs. Construction activity was up 7.3% year on which was the lowest since last March’s 4.3%.

The Argentine government has made a growth estimate for 2011 to 9% and 5.1% the following year.

Likewise from the private sector eight out of ten Argentine entrepreneurs believe the economy will continue at the same rhythm at least until next April, and further more the current world crisis could be beneficial for the country.

According to an opinion poll during the last week of September by consultants D’Alessio IROL and released this week during a business forum sponsored by the group IDEA, 48% believe the situation will remain unchanged; for another 30% there will be ‘a moderate increase’ in activity while 2% are full blown optimists.

Only 17% anticipate things for the economy will become ‘moderately worse’ and 3%, “very much worse”.

As to the global crisis, 32% of interviews believe it will not affect them while 23% said it could even be positive for Argentina and for another 3%, ‘very positive’.

As to those who stand on the opposite side of the road and anticipate unfavourable effects of the crisis, 37% describe the future situation ‘something negative’ while for 5% it will be ‘very negative’.