The General Activity Index (GAI) showed that the economy recovered by 1.9% in June compared to May. In the year-on-year comparison, activity showed a 10.6% drop, below April (20%) and May (15.7%) collapses. The most critical loss was in the construction sector, which collapsed by 30.6%; and trade which contracted by 15.4%.
Under the pretext of avoiding a balance of payments crisis, everything points to the fact that the exchange rate trap will have a long life. There is concern about the dripping reserves that the BCRA is suffering. At the end of almost three weeks in July, the BCRA recorded net sales with the private sector of $362 million. Net reserves estimated at $10 billion, half of which is gold and SDRs.
The gap between the “blue” dollar and the official retail exchange rate stood at 79% yesterday. Given this scenario, economists and foreign trade experts warn that the various exchange rates are discouraging export decisions. Soybean producers are receiving 60% less than what their goods would be worth if […]
The economic depression generated by the extensive quarantine triggered originally expected expenditures by 18%, and reduced the resource forecast by 20%, according to the bill sent by the government to Congress. A total projected deficit of 10% of GDP emerges. It would mean the most profound imbalance in 45 years.
The massive consumption had during the month of June, a fall of 3.2% compared to the same month of the previous year. According to the product categories, the main consumption drops in June were in non-alcoholic beverages (-13.4%); sweets, (-9.6%); hygiene and cosmetics (-5%); spirits (-3.8%) and perishable and frozen (3.6%).
According to a recent report by the National Securities Commission (CNV), financing for SMEs in the first half of the year increased 80% year-on-year. The deferred payment cheque remained the main instrument, reaching more than 90% of the amount obtained by the companies. 48% of the companies financed between April and June in the capital market were SMEs.
For the first time in the year, private dollar deposits registered a monthly growth during July. As of July 20, official data show that the stock of these private placements has grown by $270 million, reaching a total of $17.06 billion, after falling to levels of $16.77 billion.
The Central Bank’s board of directors was able to renew the currency swap with the Central Bank of China for about 130 billion yuan, equivalent to $18.2 billion, which was due to expire on July 27. This amount represents 42% of the BCRA’s gross reserves, which stand at $43.35 billion. The Central Bank’s board of directors is thus seeking to strengthen the reserves.
The coronavirus aggravated the crisis unleashed in April 2018, particularly affecting the lower-income segments. About three million workers, informal and independent, had severe difficulties in carrying out their activities during the isolation. Construction, hotels, restaurants, entertainment services and domestic service were the most affected. This deterioration is being mitigated by the Emergency Family Income (IFE), covering on average about 40% of the labour income of this segment.
Argentine shares have climbed to over 15% in the last five days, an escalation that market specialists see as a preview of a possible agreement on sovereign debt restructuring. Among the week’s most notable increases were those of Loma Negra (+15.5%), Transportadora de Gas del Sur (+12%) and Grupo Financiero Galicia (+12%).