Since 2007, investment has been on the decline, with an estimated level of less than 10% of GDP this year. The fall is more than double that of the GDP calculated above 10%. This year's decline is understandable after the worldwide collapse of the coronavirus. But it happens that the Argentine economy has been consuming its capital stock for more than a decade. The level of investment in 2020 will be less than half of that of the beginning of the 80s. It is the lowest investment rate in history, surpassing even the collapse of the 2001/2002 crisis.
In October, industrial production registered a 2.9% year-on-year drop and a 2.5% contraction compared to September. INDEC's Manufacturing Production Index continues to be 4% below pre-pandemic levels. In the first ten months of the year, it has decreased by 9.9% compared to the same period in 2019.
Peso loans to the private sector remained almost stable in November, in real terms, but have accumulated an 11.3% increase since the outbreak of the covid-19 pandemic. The growth compared to October was 2.9 per cent in nominal terms, with inflation estimated to be around that percentage. Credit cards and document finance accounted for most of the increase.
The pandemic hit the Grimoldi shoe store chain very hard. According to the results of its partial balance sheet for the nine months ended last September 30, its sales registered a 55% drop and the fiscal year closed with a net integral loss of 498.8 million pesos ($6.08 mn).
Construction activity showed an improvement of 4.3% in October compared to September and a decrease of 0.9% year-on-year. The sector is 9% above the February level, reaffirming the recovery over pre-pandemic levels. The accumulated figure for the first ten months of the year shows a 25.6% decrease compared to the same period in 2019, according to INDEC.
This Wednesday, the Government had its third meeting with the Argentine Agribusiness Council to define a federal, inclusive and sustainable strategy to increase exports by $3 billion.