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.
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.
The sectoral agenda took a new impulse last week to develop value chains in competitive industries to export more. The government is betting on the wine sector, and through a plan developed together with the companies, they hope to increase to $1 billion the sales of bottled wine. Instruments such as increasing reimbursements to 7%, soft loans and support in commercial missions integrated to achieve it.
In the year 2019, 24,000 tons exported and in 2020 and part of 2021 an export of 49,000 tons is expected. Between October 2019 and March 2020, exports were close to $220 million. The operation involves refrigeration plants in several provinces. Ninety-eight rabbis and auxiliaries arrived to certify the process of kosher meat slaughter in about seven national refrigeration plants, and between the end of October and the beginning of November between 120 and 140 more would arrive.
The Rosario Stock Exchange projects that in the centre and south of Santa Fe some 70 thousand hectares of wheat would lose, in the north of Buenos Aires the losses could reach 25 thousand hectares, and in the west of Cordoba some 35 thousand hectares would lose. In total there are 130 thousand hectares, four times more than in an average year, the estimated loss of area due to lack of water and frost.
According to a new qualitative survey conducted by INDEC in the context of the Covid-19 pandemic, 54.1% of the manufacturing industry operated with normality in August, with a slight improvement compared to 51% in July. The sector that presented the best indicators was food, beverages and tobacco. On the contrary, the industry with the highest rate of inactivity was textiles, clothing, leather and footwear.
Oil production in August fell by 10.7% year-on-year in all basins, even though non-conventional oil from Vaca Muerta increased its output 8.3% compared to the same month in 2019. The annual production of the main companies in Argentina - YPF, Total Austral and Pan American Energy - fell by 7.1% in the last twelve months.
The price of soybeans in the Chicago international market is over $390 and is at the highest level in the last two years. The contracts that expire in November of this year quoted at $390.15 per ton. The offers for available soybeans in Rosario square quoted around $300 per ton, a value not reached since May 2018.
Argentina's pork exports are beginning to take off. In the first nine months of 2020, they grew by 73%, compared to the same stage in 2019, reaching 31,891 tons. 65% of the cuts go to the Chinese market, which increased imports due to the impact of African swine fever on its farms.
The regime for the promotion of the Knowledge Economy becomes law, which grants a set of fiscal incentives for the development of essential industries for the country. Companies will be able to convert up to 70% of the employer contributions paid into a tax credit voucher and will be able to use it for up to 24 months from its issue for the cancellation of national taxes. They will enjoy an income tax reduction in a percentage that varies according to size, 60% discount will apply for SMEs and micro-SMEs, 40% for medium and 20% for larger ones.