Alberto Fernández’ government will pay on Monday $98 million for maturities of the ‘Discount’ bond and on Tuesday $752 million for the controversial ‘Centennial’ bond, the National Treasury announced. Argentina will end this year having paid all maturing bonds in 2019, after securing the postponement until 31st August of $9 billion payments by launching Treasury bills in pesos with generous interest rates, maturing in April and June.
Crude steel production fell 21.6% in November compared to the same month of 2018, with a volume of 357,500 tons, the Argentine Chamber of Steel reported. In relation to October, local steel production marked a decrease of 6.4%, and in the last twelve months accumulates 9.9%.
Argentina’s unemployment rate rose to 9.7% in the third quarter versus 9.0% in the same period last year, marking one of the highest rates recorded in recent years, the National Institute of Statistic and Census (Indec) said. The third quarter result was slightly improved from the second quarter rate of 10.6%. Last week, Indec said that Argentina’s economy shrank 1.7% in the third quarter versus the same period the previous year.
The new Argentine Government signed a social agreement with leaders of business, unions and social organisations to address the social emergency, seek a sustainable solution to public debt and launch an Economic and Social Council. The pact was achieved two weeks after Alberto Fernández took office and obtained the Congress approval of a public emergency law with a comprehensive economic plan.
According to analysts at ABN AMRO, among the ‘big six’ Latin American economies, Argentina is the only country which looks to be heading for a further contraction in 2020. “The economic outlook is highly uncertain; at this point in time, we are forecasting a 2% contraction in GDP in both 2019 and 2020, with a slight recovery in 2021,” they say in their last report.