MercoPress. South Atlantic News Agency
Industrial production in Argentina declines for the 13th consecutive month
Car production was the hardest hit with production plummeting 34.6% compared to August 2013 and 7.5% from July Argentine industrial output fell 2.3% in August compared to a year ago and 2.8% in the last twelve months in non seasonally adjusted terms according to a report from the Ministry of Economy.
Strict import restrictions and recession in Brazil hurt demand for automobiles, one of the leading manufacturing sectors. August marked the 13th consecutive monthly decline.
Argentina has tightened trade controls since it was declared on selective defaulted on its debt in July and is restricting the amount of dollars available to importers in an attempt to protect its already thin foreign reserves.
Central bank reserves, which have dropped 8.7% this year and 35.4% since the start of 2013, fell to 27.9bn dollars on Monday, the lowest level since the end of April.
Production fell 1.3% in August from the previous month in seasonally adjusted terms, the ministry said. Car production was the hardest hit with production plummeting 34.6% compared to August 2013 and 7.5% from July. In the first eight months of the year production fell 23.7% compared to the same period a year earlier.
Argentina has rejected carmaker complaints about import controls but a government source acknowledged the problem earlier this month. The source said Buenos Aires had committed to guaranteeing them 100 million a month for car part imports.
However the Argentine government has also accused car distributors of refusing to sell cars because of price controls, and fearing costs mismatch if the Argentine Peso continues to slide against the US dollar.
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Read all commentsand what else do you want with kicillof in charge?
Oct 01st, 2014 - 09:44 pm 0last news for this 4th class site: fábrega resigned to the central bank and is replaced by...vanoli, who is not even qualified to manage a supermercado chino.
the tw@t will insist in controlling the blue dollar through the gendarmería....
for the imbecile the problem is the cost of the dollar and not the inflation.
I think you would have more luck with the manager of a supermercado chino as Economic Minister.
Oct 01st, 2014 - 09:55 pm 0I am not joking. I met several managers/owners of supermercados chinos when I used to do business in Venezuela.
Very sharp people. Always the best deal for themselves, even when you think you have.
Often wear cheap clothing, drive bad looking but well maintained cars. But if you ever (rarely) get invited to their houses..
Often very wealthy people.
Much smarter than the average bear!
Paul, My guess is they'll immediately set up bands of exchange like Venezuela and soon enough the Peso will be 100/1. It won't take a few years like it did there because they have oil and Argentina has nothing to sell.
Oct 01st, 2014 - 10:00 pm 0I hope you have been buying laundry detergent like I've been recommending that last umpteen years.
Hoard now to barter later
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