Argentina’s industrial output fell 4.5% in November versus the same month a year earlier, according to National Institute of Statistics and Census (Indec). In the first eleven months of the year, the indicator accumulated a decrease of 6.9%. The fall marked the 19th straight month of dwindling industrial output.
The World Bank expects Argentina to emerge from recession in 2020. Its latest Global Economic Prospects report forecasts a pick up in growth to 4.3% for emerging market economies this year. However it trimmed 0.2% its global growth forecasts slightly for 2019 and 2020 due to a slower-than-expected recovery in trade and investment despite cooler trade tensions between the United States and China.
A total of 6,425 hydraulic fractures were carried out last year in the Vaca Muerta formation, a 33% increase from 4,825 in 2018, according to data provided by NCS Multistage. State-controlled YPF carried out the largest number of fractures by a huge margin with 3,034 in 2019, a 54% increase from the previous year. The 2019 level is almost double than 2016.
Argentina’s new central bank president, Miguel Pesce, pledged to further cut interest rates in January (currently at 55%) to boost a free-falling economy while fighting inflation through a “social pact” that would encourage companies to raise production rather than prices. He said that the BCRA will continue with the controls of the exchange market and anticipated that it will extend the 7-day term of the Leliq treasury bills.
Production Minister Matías Kulfas hailed Argentina’s business community for their efforts in supporting the government’s newly re-launched ‘Precios Cuidados’ price-controls scheme. It consists of a list of 310 items available at 2,278 stores across the country run by 20 supermarket chains, whose prices will drop in average 8% with a quarterly review.