Argentina's economy likely contracted around 20% year-on-year in the second quarter of the year, hit by the coronavirus pandemic and a nationwide lockdown imposed in March, economists polled by Reuters estimated. That would be the worst quarter since at least the 1980s, according to official government data, and a sharper drop than any period during Argentina's major economic crisis in 2002, when the steepest quarterly fall was 16.3%.
The Argentine diplomacy in Brazil advances with the project to build a 2,400-kilometre gas pipeline to join Vaca Muerta with Porto Alegre. The mega-project will cost almost $5 billion, and its viability is already studied. The initial plan foresees the laying of 1,430 kilometres from Neuquén to the border with Brazil, in Uruguayana, and another 600 kilometres from there to Porto Alegre, where it connects to the gas distribution network of southern Brazil.
Industrial activity contracted by 2.2% year-on-year in July, although it recorded a rise of 8.4% per month in the seasonally adjusted measurement. The sector remains 3.9% below pre-pandemic levels, a product of the sectoral and regional heterogeneity.
The state's fiscal accounts are still in the red: last month, they closed with a deficit of 89.499 billion pesos ($1.18 bn), because spending increased 56.9% year-on-year, while income increased by only 32.4%. Inflation had an increase of 40.7% for the same period. The August deficit increased by 751.1% concerning a yearly basis; resulting in a fiscal deficit of 4.2% of GDP.
A judicial setback stopped YPF to save at least $70 million on a new river contract to transport fuel to northwestern Argentina. The case in question has to do with a bidding process carried out by the oil company last year, which awarded the service to the Horamar Shipping Company, which had offered a contract of $67.2 million, which implies a saving of $72.8 million concerning the previous rate of the National Shipping Company, worth $140 million per year.