Category: Macroeconomy/Finance

Information regarding Argentina’s productive sector and the country’s macroeconomy.

Retail sales fell 34.8% in June

Retail sales in small and medium enterprises (SMEs) fell 34.8% compared to the same month in 2019. In the Metropolitan Area of Buenos Aires, the fall was 49.3%, the rest of the country the fall was 20.3%. The gap is explained because in rural municipalities, with controlled cases of Covid-19, began the flexible quarantine.

Trade with Brazil fell by 35% in June

Bilateral trade with Brazil reached $1.1 billion during June, according to official data from the Brazilian government. It means a year-on-year contraction of 35%, the lowest level since 2003. The bilateral trade balance showed a deficit of $103 million for Argentina.

Support for Covid-19 is now 2.9% of GDP

Although the national government estimates that in total it injected 5 points of the product into different direct and indirect programs to confront the pandemic, the amount spent up to May reaches 2% of the GDP. If we add to this the spending of June, the amount rises to 2.9%.

Debt indexed to the official dollar amounts to $557 mn in 2020

The stock of debt indexed to the dollar already amounts to u$s557 million so far this year, of which $472 million were closed in the last 40 days. This reflects the interest of issuers and investors. At the moment, there is idle liquidity and particularly voracious appetite of investors, but the problem is that when it devalues, that indexed debt is not going to be worth what it is now. It starts to be worthless because the exchange rate adjustment is over, the price goes up because of the devaluation and the next day the holders go out and sell it. This ends up complicating the BCRA, which today would already have sold positions for more than $4 billion.