Due to the lack of rain, 500 thousand hectares less of the cereal sown. It means lower production of the grain as a consequence of the drop in yields that could reach 15%. It now estimates that wheat production will be 18.2 million tons and the exportable balance will be 10.2 million tons. The export would generate income for $688 million less.
Beef exports to the United States grew 2.325% year-on-year between January and July, reaching 13.59 million tons and a total value of $66 million. Foreign currency income increased by 1,957%.
The gap between the official dollar and the blue, which is around 80%, together with the impossibility of maintaining its position in dollars, discourages the grain trade and this hits the government’s coffers hard. Today producers have in their possession 18.5 million tons of physical soybeans available, and 8.2 million tons delivered to fix and without a price, which means around $10 billion in foreign currency -more than necessary for the Argentine economy in the last part of the year- but the truth is that they are far from accelerating their sales to finance the next campaign and this notices.
The Government made official the 7.5% increase for retirees and pensioners as of September. Thus, the minimum credit will be 18,129 pesos ($246), while the maximum will be 126,897 pesos ($1,722). With this increase, eight out of every ten retirees will beat accumulated inflation so far in 2020 by nearly 22%.
As of September 1, cars over $26,200 will pay internal taxes at a rate of 20% corresponding to the first scale of this tax. This tax will begin to impact from the lowest level since its application. In the last adjustment, it applied to vehicles over $27,400. Meanwhile, the second scale will have a 35% tax surcharge starting with models valued at $48,404. It is due to the 6.42% adjustment corresponding to the April, May and June quarter, which arises from the Wholesale Price Index System (SIPM) and will be in effect until the end of November, according to calculations made by automakers.
The government announced the production of new aircraft of national output with an investment of $2.5mn
The government announced that Argentina would begin manufacturing a new military training and primary civilian use aircraft. It is the IA-100 “Malvina”, which will be produced by Fábrica Argentina de Aviones S.A. (FADEA) and financed through the Institute of Financial Aid (IAF). The aircraft will require an investment of $2.5 mn and will be the first mass-production project of an aeroplane, after the IA-63 Pampa, an advanced training ship and emblem of the factory based in Córdoba.
The slight but gradual recovery of the economy after the abrupt closures due to the COVID-19 pandemic reflected in the improvements observed in the construction sector, which is essential in driving other activities and generating employment. More than half of the works with contracts in force until July 31 are already under regular development, an improvement of 20 points was observed in recent months, as the figure rose from 34% to 54%.
The electricity demand grew by 1.2% year-on-year in July while presenting a monthly increase of 13.3%, according to the Foundation for Electric Development (Fundelec). The improvements drove by household consumption.
So far in August, the BCRA has sold $738 million in reserve dollars, exceeding the May maximum of $679 million. It is the most massive net sale of foreign currency of the year, which so far accumulates a total of $1.2 billion. It is not the fault of the $200 quota. The drainage reflects other macroeconomic symptoms, such as the excess liquidity and the investment spirit that so far is declining due to private deposits in pesos.
The analysis of the Argentine Institute of Fiscal Analysis reflected a negative balance of 4.7% in the accumulated balance of the seven months of the year. Even though the seventh month showed a recovery for the second consecutive month, they warn that we are still far from sustainable levels.