Access to finance was critical for all businesses throughout 2020 because of the pandemic's impact on economic activity. Although the national government provided subsidized credit lines, the market covered a good part of the companies' financial needs, providing 168.25 billion pesos ($1.98 bn) during the year, 59% more than the volume negotiated in 2019. The data also revealed that financing in dollars increased 8% year-on-year with $2.38 billion.
Domestic vehicle production closed 2020 with a cumulative 257,187 units and a year-on-year fall of 18.3%, reaching the lowest level since 2004 in terms of manufacturing, exports and local terminal sales due to the impact of the pandemic on activity. Production is projected at 440,000 units this year.
While the local harvest has risen to $21 billion with the international price at $502.7, so has the availability of merchandise, which is why during the last week of 2020, strongly reactivated sales by producers, and could generate a more significant income of foreign currency during the first part of this year. The domestic market pays over $340 for available grain, and in terms of anticipated sales of 2021 harvest soybeans, 12% has been sold to date, equivalent to 5.5 million tons.
The oil company Vista Oil announced that the average production of conventional and non-conventional hydrocarbons in Argentina increased by 20% in the fourth quarter of 2020, compared to the third quarter, indicating a recovery in a year hit by the fall in demand for fuel due to the COVID-19 pandemic.
In 2020, the tax burden reached 24.7%, the highest level in the last four years. With the incorporation of more taxes, the weight on GDP grew by 1.3 percentage points from one year to the next. The tax pressure increased due to a low GDP growth affected by the fall of activity and a lower nominal value and the creation of new taxes such as the Country Tax or the increase of rates, in the case of Personal Assets.