In any case, the official government report also reports positive data: in August, industrial production was the highest for that month since 2016. Investment increased for the fourth consecutive quarter and reached “the highest level since at least 2004” . As for industrial employment, it stands out that it has “two years of consecutive increases”.
Similar data is observed by the Argentine Industrial Union (UIA). The latest work from your study center shows that industrial activity in August grew 11.3% year-on-year, but fell 0.7% compared to July, in the measurement without seasonality. In the accumulated figure for the year, it maintains an increase of 8.4% compared to the same period of the previous year. At the sectoral level, the 12 items that make up the UIA industrial production index had year-on-year increases in August. Automotive, non-metallic minerals and basic metals stood out.
In any case, the electronics industry fell sharply: 20.6% year-on-year in August. They pulled down the production of cell phones (-39.7%), car radios (-4%) and microwaves (-1.8%). The advance data for September published by the UIA show a similar situation, with even more pronounced declines. Where you see uploads is on televisions and air conditioners. With these data, the accumulated figure for the year (first nine months) shows an increase of just 0.6%.
Arrive Now 30
It is precisely the sector of the electronics industry that is sought to be promoted with the new Now30 installment plan, which will be launched this Friday at a rate of 48%, 30 points below the market. “30 quotas have not been given since the second government of Cristina Kirchner,” said a source from the small table of the Minister of Economy, Sergio Massa. It will be for refrigerators, washing machines, cell phones, air conditioners and televisions.
In the UIA report they highlight an alarm: “The sector remains concerned about the restrictions on imports ordered by the Central Bank, which complicate the supply of some key parts.” Official sources stressed that there will be no “fiscal cost” because the $100 billion rate subsidy is provided by the banks, while they ruled out “problems with the dollars” because they agreed to lower imports by $400 million by 2022.
According to the economic team, the technology and appliances that will maintain their prices for 90 days were designed with the criteria in the consumption of the socioeconomic sectors of medium and low income. Cell phones will be mid-range and low-end, and televisions with 4K technology, between 50 and 58 inches. “We want a C1 consumer to buy a TV, not someone with high incomes to buy the fourth TV in the house”told an official source.
In addition, there was a dialogue between the Ministry of Commerce and the Ministry of Energy to include low-consumption products, with the focus on the winter of 2023. In any case, sources within the Government warn that the program is not accompanied by a plan of “ recycle” current electrical appliances.
In this sense, the UIA also highlights the retraction in credit, which contracted 9% year-on-year in real terms in September for the private sector. “The consecutive rises in interest rates to contain the rise in prices show a negative impact on financing,” says the report. The rate of advances in checking account rose to 71.1%.
While, consumer credit fell 8.8% year-on-year in September, and has been in decline for three consecutive quarters. In addition, credit in dollars contracted by 44% year-on-year in September, key these days to finance imports with the new SIRA mechanism, which does not provide for “advance payment”. From an SME they commented: “SMEs are desperate”. That was transferred this week to the Secretary of Commerce, Matías Tombolini, from the CAME. They will do the same from the Chamber of Commerce next week when they receive Massa.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
