MercoPress. South Atlantic News Agency
Argentina's industrial output was down 8.1% in the twelve months to June
June marked the second straight month of declines after 12 straight months of industrial expansion Argentina’s industrial output plunged 8.1% in June compared with the same month last year, government statistics agency Indec said, the sharpest monthly drop since the country was in the grips of an economic meltdown in 2002.
The Argentine economy is sliding toward recession following a run on the Peso currency that prompted a jump in inflation and forced the government to turn to the International Monetary Fund (IMF) for a US$ 50 billion stand-by financing deal.
Many economists expect the economy to shrink in the second and third quarters of this year, after government data showed activity contracted in April and May. Many businesses are struggling because of Peso depreciation and high interest rates as the central bank seeks to combat inflation.
June marked the second straight month of declines after 12 straight months of industrial expansion. Cumulatively, industrial output was up 1% in the first six months of the year compared with the same period in 2017.
It was the largest decline since output fell 8.5% in August 2002. Industrial production had fallen 8% in October 2016, in the midst of a prolonged contraction in manufacturing activity during the first year of President Mauricio Macri’s term.
By different sectors, oil refining was down 19.9%; metal mechanics and auto production 10.9%; chemical produce and goods, 10.06%; textiles, 10.08%; tobacco, 9.7%; food industry, 5.4%; printing, 4.2%; non metal minerals, 3.7% plus paper and Kraft, 1.2%. However basic metal manufacturing was up 9.8%.
Likewise the construction industry after fifteen months of sustained growth, was down 0.1% in June, but overall June reported a 0.5% advance over May.
Top Comments
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Read all commentsA typical comment made by a Kirchner fanatic, totally clueless about economics. The Kirchner governments over their 12 year rule doubled the size of the government (spending went from 23% to 44% of GDP), doubled the tax rate, and still managed to leave a huge fiscal deficit (10% of GDP including provinces) which the present government has lowered to 6%. The Argentine economy hasn't grown two years straight since 2011, and the poverty rate left by Cristina Kirchner is higher than when she took over. (30% in 2015 vs. 26% in 2007 - 8 wasted years). On top of this, we can add the pernicious double-digit inflation created by the Kirchners due to reckless money printing to finance the budget hole, and the dozens of lost international demands due to stiffing creditors and bondholders, a huge bill which the Macri government has been left to pay.
Aug 05th, 2018 - 08:44 pm +3I very much prefer a recession due to this necessary austerity to plug the fiscal hole left by the Kirchners, than the reckless money printing of the Kirchners which would have led Argentina to an hyperinflation just like the one in Venezuela today. (Chavez and Cristina had the same policies, Venezuela was just ahead of the curve).
Macri may be a flawed leader, but he has saved Argentina from a Venezuelan fate. As desperate Venezuelan emigrants flood Buenos Aires (mostly middle class professionals) most Argentines are beginning to realize the bullet that we just dodged.
EM
Aug 07th, 2018 - 01:51 am +1Answer me this. You're not happy with Macri and you want him do do things differently.
If you were handed the Presidency of Argentina today, with all its current economic problems laid on your desk, what “specific” economic moves would you make to:
1) raise the GDP,
2) increase gainful employment,
3) tame inflation down to 9%,
4) stabilize the peso,
5) increase production of basics like food and oil,
6) give all Argentines secure, independent futures for themselves.
Tell me your 12 point plan, be specific.
(don't dodge the question, OK)
BP,
Aug 08th, 2018 - 05:41 pm 0To Reekie: ”Tell me your 12 point plan, be specific. (don't dodge the question, OK)”
Over 24 hours later and no reply from Reekie...
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