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“Activity level has dropped” says Argentine industrial union chief

Tuesday, July 10th 2012 - 05:19 UTC
Full article 5 comments
 However De Mendiguren supports import controls However De Mendiguren supports import controls

The head of the Argentine Industrial Union, José Ignacio de Mendiguren, admitted that “it's clear that the activity level has dropped,” and warned that “the construction-related sectors delay the new projects.”

Regarding the economy, De Mendiguren admitted that there are external factors that have an impact on it, but assured that there could be “better tools to face” this situation.

The head of the UIA also referred to the currency exchange controls and to the situation triggered by these restrictions.

He considered that the controls in the exchange market that have paralyzed the purchase of dollars did not directly affect the industry. Nevertheless, he warned that “it is risky if the ones that work in economics base their thoughts in the 'blue' dollar.”

De Mendiguren also backed the import controls, but stated that Argentina's “level of activity is linked to the import of supplies and inputs”.

“That there is a drop in the level of activity is quite clear. According to INDEC (national stats institute) the fall is greater than that of our own technical groups”, said De Mendiguren.

According to INDEC monthly estimates industrial production dropped in May 4.5% compared to the same period a year ago, thus expanding the slowdown tendency from April.

The fall is explained by a contraction in steel making and in auto production, the steepest since January 2010, when activity dropped 8.4%.

Top Comments

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  • LEPRecon

    So what he's trying hard not to say is that CFKs bizarre policies are hurting industry in Argentina.

    No industry, means nothing to export (Tobias will be happy as he wants Argentina to isolate itself from the world), which means no imports, which means no money, which means industry failing and workers being made unemployed.

    Good economic model, CFK, how to destroy a country in less than 10 years.

    Jul 10th, 2012 - 07:46 am 0
  • rnbgr

    He backs import controls but then he says “the level of activity is linked to import of supplies and inputs” it's very difficult to protect local industry by blocking imports if you don't make everything (parts)

    Jul 10th, 2012 - 01:14 pm 0
  • Chicureo

    Don't worry, soy prices will continue to skyrocket, the Chinese will invest billions in Argentine bonds and fund YPF operations, Brazil will back down and accept CFK's policies and finally... The UK will hand over disputed South Atlantic territories to their rightful owners...

    Perhaps, the grand wizard of oz will give the wicked president CFK a dousing of water with a bucket... Oh, what will all the flying monkeys do then?

    Jul 10th, 2012 - 02:26 pm 0
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