Raízen Argentina, licensee of the Shell brand, will invest $715 million in its Dock Sud refinery, in the district of Avellaneda for the period 2020-2023. The company stated that the new investments will generate 4,000 new jobs, as well as 3,000 new contracts with local suppliers, including many small and medium enterprises.
Day: October 14, 2020
IMF forecasts an 11.8% drop in GDP
The International Monetary Fund (IMF) has projected for Argentina, a decline of 11.8% in economic activity for this year and recovery of 4.9% for next year. IMF statistics place Argentina among the 24 countries in the world most affected by the recession.
Steel production grew 6.3% in September
The increase in private construction and higher consumption of durable goods boosted steel production during September. According to the Argentine Steel Chamber, production reflected a 6.3% increase over August, although it was still 11.9% lower in the year-on-year comparison.
General Motors resumes its $300 million investment plan
General Motors resumed its $300 million investment plan to produce a new vehicle of its Chevrolet brand in the factory located in the town of Alvear, in Santa Fe. The decision to resume the $300 million investment and produce a new vehicle that will have as its primary destination the export market ratifies General Motors' commitment with Argentina and with domestic production.
Reserves down $196 mn from last week’s close
The Central Bank has been losing $1.66 billion since September 15, the day the super-trap installed. Yesterday the gross reserves closed at $40.84 billion. It estimates that part of yesterday's fall links to the decline of gold (-1.73%) and the yuan, with the latter having an impact on the total due to the swap with China. The BCRA ended the day in a neutral position, that is, without being a net buyer or seller of foreign currency.
Tiendanube online sales platform received $30 million
Tiendanube, a local platform created in 2010 by five young people, in charge of looking for user behaviours to boost the business of brands on the web has just received a new injection of funds of $30 million. Tiendanube works with more than 60,000 brands throughout the Latin American region. Numerous SMEs and entrepreneurs managed to multiply their sales through the platform.
Due to the exchange rate gap, a deficit of $7 bn in tourism predicted for 2021
The return of international tourism will increase the dollar deficit. Analysts predict that the new normality will leave a deficit of $7 billion that will aggravate the problem of foreign currency shortage. The shortfall will expand in two ways. On the one hand, due to the effect of the gap, the "dollar card" will be cheaper than the "dollar bill", since Argentineans who manage to travel abroad will prioritize card spending before cash payments. On the other hand, foreigners arriving in the country will be more convenient to sell the dollars in the blue than to pay by legal means. In the informal sector, they would receive 163 pesos per dollar and in the exchange houses, 75 pesos per dollar.
