Due to strict restrictions on mobility and production to prevent the spread of Covid-19, Argentina's Gross Domestic Product (GDP) plummeted by 19.1% in the second quarter of 2020, compared to the same period last year. Thus, it accumulated a 12.6% year-on-year contraction in the first semester.
The economic impact of grain crops is essential because these chains alone accounted for more than 40% of exports in the first half of the year. This industry is probably one of the most significant productive economic events for the country, for its macro economy, for employment and the supply of dollars. Beyond the excellent export performance of these complexes, the activity is hedged by high tax pressure.
The shares of Argentine companies fell after the settlement of the sovereign debt, the destruction of the value of companies listed in New York shows it: $ 13 billion were lost from August 3, one day before the settlement of the debt, until Friday last week, a fall of 17%. The figure comes from comparing the stock market capitalization of 14 Argentine companies that quoted on the US market; the banks were the most affected.
After investing $10 million to expand production capacity, Rabieta completed yesterday the shipment of the first container of the three scheduled to export 150,000 cans of craft beer to China and already has in its portfolio the next destinations: The United States, Uruguay and Spain. The brewery is in Pilar and can produce more than 200,000 litres per month and the possibility of canning 33,000 cans per day. The company is part of the Dagma group, owner of Mega Alfalfa, Federal Energy Company (Efesa, in La Rioja) and with the concession of the Palermo racetrack.
Breeders and authorities of the National Equine Industry Chamber warned that they are living the worst year in the history of the activity: in the time that there were no races due to the mandatory quarantine, in the area they lost income for about 10,000 million pesos ($132.29 mn). The lack of races also discouraged breeders' investments and, they estimate, this will show in a 20% decrease in the births of racehorses and thoroughbreds. Argentina is the fourth world producer of thoroughbred racehorses -with 9000 foals per year-, and it estimates that for each horse there are between 5 and 7 people linked to the activity. It is one of the areas that generate the most employment in the sector.