Category: Macroeconomy/Finance

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

Argentina launches plan for renewable energies for up to $30,000

The National Ministry of Agriculture, Livestock and Fisheries has launched a call for investment proposals aimed at incorporating technologies for the generation of renewable energy applicable to agricultural exploitation and industrialization. Non-reimbursable contributions can be up to 60% with a maximum refund amount of US$ 30,000 per initiative. The closing date is August 28th. Projects must submit by sending the completed form and its attachments to diprose@magyp.gob.ar with a copy to serviciosfinancieros.diprose@magyp.gob.ar.

Trade surplus grew 45% in the first semester and reached $8.09 billion

In the first half of 2020, Argentina recorded a trade surplus of $8.097 billion, which meant a growth of 44.8% compared to the same period but in 2019. Exports fell by 11% and imports collapsed by 23.3%, affected by the fall in economic activity. The decline in imports explained by a lower purchase of capital goods such as machines, electrical appliances, nuclear reactors, or mechanical devices, land vehicles and fuels. On the side of exports, the most significant fall verified in the sales of land vehicles.

Almost 80% of taxes levied on goods and services

78.6 per cent of tax collection at the three levels – nation, province and municipalities – is for the production and transaction of goods and services, while the remaining 21.4 per cent comes from taxes linked to income and wealth. The public sector is one of the largest payers of the levies contained in goods and services. Indirectly, the government is affected by the consequences of the system’s regressivity. It is because, by modifying the purchasing power of the lower-income strata, the government has to implement social plans and compensatory subsidies (transfers).

S&P downgraded two bonds

The risk rating agency Standard & Poor’s (S&P) announced yesterday the downgrading of two Argentine bonds in foreign currency to “D”, from “CC”, and left them in default because the government did not cover the maturities of these securities that are part of the debt renegotiation.