Three million workers struggled during the quarantine

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.

ADRs rose to 15.5% in the week

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%).

Dollar bonds up more than 10%

Since Argentina launched the last official offer until today, dollar bonds performed positively, rising more than 10% weighted. In stocks, we see a more than exciting rise: Merval grew 22% in pesos and 17% in dollars. Among the Argentine shares quoted on Wall Street, instruments grew up to 35.5% in the month (Banco Supervielle). Irsa, meanwhile, grew 32.6% in July.

Mercado Libre will invest another $27 million in Mexico

In the same day, the company received praise from the British weekly The Economist and announced a $27 million investment in Mexico to open a distribution centre similar to the one it has in La Matanza in the state of Jalisco, with a capacity of 60,000 square meters, half of which will be operational in November. Yesterday the share value was parked at $982.30, with a fall of 3.47%, which placed its value at $48.83 billion. Mercado Libre continues to be the Argentine company with the highest valuation in the world.

MercadoLibre is a wannabe Alibaba

The pan-Latin American e-commerce and fintech firm’s market value has doubled to $50bn during the pandemic as it has provided online sales and payments lifelines to vulnerable companies. Since it was founded in it has become the region’s biggest tech darling, even though in 2020 revenues are projected to be just $3.2bn and it will lose money for a third year running. Profit, though, is for the future. Meanwhile, it is part of a wave of digital disruption that may propel smaller firms—which make up about 80% of those using its platforms—into the modern era. Its e-commerce business earns a fee from transactions between buyers and sellers on its platform.

The economy grew 10% in May compared to April, although it fell 20.6% year-on-year

Due to a more significant easing of restrictions, the economy bounced 10% in May compared to April, as reported this Wednesday by the INDEC. However, the Monthly Economic Activity Estimator (EMAE) showed a 20.6% drop compared to the same month in 2019. In the first five months of the year, the EMAE accumulated a fall of 13.2% compared to the same period last year. In April, the economy had collapsed by 26.4%.

In June, primary spending grew 73%, and revenues rose only 23%

The national public sector ended June with a primary deficit of 3 points of GDP. The data show the deterioration that the pandemic caused on public finances since on the one hand; it generated a drop in resources and on the other, it forced an increase in spending. Revenues rose by only 23%. Economists project a deficit for the whole of 2020 of between 7 and 8 points of GDP.