Category: Industry

Information about Argentina’s economic sectors

Argentina’s shale fracturing hit a record in 2019

A total of 6,425 hydraulic fractures were carried out last year in the Vaca Muerta formation, a 33% increase from 4,825 in 2018, according to data provided by NCS Multistage. State-controlled YPF carried out the largest number of fractures by a huge margin with 3,034 in 2019, a 54% increase from the previous year. The 2019 level is almost double than 2016.

Automotive production: the worst in 15 years

Automotive production fell 32.5% in 2019 compared to the previous year, according to the Automotive Factory Association (Adefa). With only 314,787 units that left factories, it was the worst year for this industry since 2004 when 299,205 vehicles were manufactured. Shipments abroad totaled 224,248 units, with a cut of 16.7% compared to 2018, and the worst figure since 2006 (218,543).

Banco de la Nación will fight Vicentin debt restructuring

Argentina’s biggest bank plans to oppose any attempt by Vicentin SAIC to restructure its $900 million of debt. Officials at state-owned Banco de la Nación have told Vicentin, one of the country’s biggest soybean exporters, the agricultural company must sell assets to pay down its obligations before seeking relief. Their viewpoint is key because the bank is the largest creditor for Vicentin, which last month missed a $350 million payment to farmers amid an economic crisis in the agriculture-dependent country.

IBM partners Chamber of Fintech in Argentina

The U.S. multinational computer hardware developer IBM has partnered with the Chamber of Fintech in Argentina to provide cutting-edge resources for the country’s banking and technology sectors. IBM plans to provide over 130 different services to affiliate companies and give access to various tech platforms. Entrepreneurs developing their own products and services with IBM’s suite might also be eligible to obtain subsidised credits while earning up to US$120,000 annually.

Argentine beef exports grew 50% due to higher Chinese demand

Argentina exported 670,000 tons of beef in the first 10 months of 2019, 50% more than in the same period of 2018, according to a report by Rosgan Livestock Market of Rosario Stock Exchange. The analysis indicates that this was due to higher demand in China, where 74% of total exports were directed. It also projects an annual closure of 850,000 tons, thus exceeding the historical record of 2005 (771,000 tons).

Bad year for the footwear industry: production -10%, consumption -15%

Footwear production reached 69 million pairs between January and October 2019, a 10.3% drop compared to the same period of 2018, according to a report by the consulting firm Investigaciones Económicas Sectoriales (IES). In that period, consumption registered a total of 89 million pairs, with a decrease in comparison of 15%. Exports decreased 11.1% by registering $ 8 million while imports decreased 32.8% ($353 m vs. $525 m).

Products of the Basic Food Basket increase 7% from today

The prices of the Basic Food Basket increase between 5% and 9% from this Thursday as a result of the application of VAT that had been exempted last August. Milk is the only product that will not undergo changes due to an agreement between the government, producers and supermarkets. Those products considered non-basic will increase up to 21%.

Car sales fell 42.7%, the lowest level since 2006

Brand-new vehicles sales averaged an annual drop of 42.7% and during 2019 only 459,592 were patented, according to data from the Association of Automobile Dealers (ACARA). During December this year the number of registered new vehicles was 17.8% less than the level reached in November, and 25.20% less in the year-to- year comparison.

Argentine agro-exports jump 17% in 2019

The clearing of cereals and oilseed exporters of 2019 exceeded $3.5 billion over the previous year, this is 17.3% more than in 2018 and 4.1% less than the historical record of 2011, according to CIARA and CEC , the two main chambers of the sector. In the year that ended they reached $ 23.7 billion with a strong rebound in the last quarter with a register of $ 2.2 billion in December.