Economic activity
The economy grew again during 2022 and registered an increase of 5.4%. In this way, we add more growth to the 10.3% that was registered during 2021. We are one of the countries that grew the most in these last two years. All our own projections and those of international organizations indicate that in 2023 we will grow again. We will be one of the fastest growing countries in the world and one of the first in the region. It will be three consecutive years of growth in our production, something that has not happened since 2008.
The numbers that stood out:
– In 2022, industrial activity grew 4.5% compared to 2021, and shows a growth of 12.1% compared to 2019.
– The industry chained 15 months of continuous increases and industrial employment reaches the highest level since June 2018, accumulating 29 consecutive months of expansion, registering more than 86 thousand new jobs in relation to December 2019.
-In the automotive industry, an increase of 23.4% was observed in 2022 compared to 2021 and 70.5% compared to 2019. It is the highest since 2015. Estimates for the sector project for 2023 a growth of the order of between 10 and 15% in production.
– In the clothing, leather and footwear sector, as of November 2022, the twenty-first consecutive year-on-year rise was registered with a 45.8% higher production than in 2019.
– For the same month (November 2022) the Steel Industry registered an increase of 28.4% compared to 2019. Food production is 13.1% higher than in 2019 and that of Machinery and Equipment is 45.6% above the 2019.
– Industrial SMEs: use of industrial installed capacity and SME industrial profitability at its highest level in more than 3 years.
– Agricultural sector: the year closed with concerns about a very severe drought that, to a greater or lesser extent, has been affecting the production of wheat, barley, soybeans, and corn. Faced with these climatic difficulties, the State has provided a set of instruments to support the most affected producers, as we do with all sectors of our economy. However, the exports of the sector during 2022 were record.
– Knowledge economy: the knowledge economy is one of the most dynamic and promising sectors. It has not stopped growing since December 2019. From the Government we accompany and stimulate this development. Today it is already the 3rd export sector of the country.
– Investments: one of the demand components that is driving economic activity the most is investment, which remains at the highest levels of the last four years. In the accumulated to the third quarter of 2022, investment grew 14.6% compared to the same period of 2021 and 27.3% compared to 2019.
Outstanding debt: the distribution of wealth
There is no solution to anything if the economy does not grow. Of course we must better distribute our generation of wealth, but it is essential to lay the foundations for balanced growth. If we don’t grow, there is nothing to distribute. If we grow without active distribution policies, wealth is concentrated in a few hands. It is in this cleavage that an intelligent and efficient state has to settle.
The role of the state in the economy
If we grew and generated more employment, more investment and more consumption, it was because we adopted active policies from the State. From the preservation of companies and employment during the pandemic to the current policies that stimulate production and exports, those that promote lines of credit and those that seek agreements between the parties in all productive sectors.
The dedication to Sergio Massa
Despite the cataclysms so often announced, we continue to put our economy in order. We are doing it with the effort of everyone in the government, but I want to point out and thank Sergio Massa for his commitment here, who left the Presidency of this House to join the complex task of leading the Minister of Economy.
Inflation
We do not mean to deny the difficulties we face. We do not shy away from problems. We do not resort to neologisms to describe them. The high inflation that we all suffer from is a central disorganizing factor in our economy.
We all know well that inflation is a structural problem in Argentina that goes back decades.
We are committed to reducing it without generating increases in poverty levels or slowing down the growth process that we have been experiencing. It is not an easy task. Those who minimized the problem ended up deepening it.
Message to the IMF and the markets
To be clear.
No need to the IMF for know that must achieve he balance fiscal. We cannot persist with policies that generate deficits in our public accounts. Because, although it is not feasible to achieve that objective overnight, fiscal balance must be our horizon.
Nor do we need the IMF to know that Argentina should increase its exports. If we do not generate foreign currency, we will not be able to sustain our economic activity and that will mean less work and lower wages. Taking care of the value of the currency is essential to follow the path of growth.
We often listen to those who announce financial crises and sharp devaluations. They try to sow uncertainty and generate mistrust. Those who blew up the Argentine economy barely three years ago are the same ones who are now announcing that a bomb will explode in the future.
But we continue to work firmly and prudently and we are obtaining results that we can exhibit.
We carry out an administration of a scarce asset such as foreign exchange so that, as a priority, they are turned over to production.
I repeat one more time. A central policy of the Government is to take care of the reserves and we will continue on that path.
Energy and the role of YPF
We began construction of the Néstor Kirchner Gas Pipeline in 2022, which we will be able to inaugurate in the middle of this year. It is the most important gas transport project of the last four decades.
When the previous administration thought about this gas pipeline, it designed a project under the PPP system (public-private partnership) with dollarized rates for 27 years. A tender was launched only in July 2019, which had to be postponed due to its unfeasibility. That project left the infrastructure in the hands of private financing and management.
Less than a year ago, after the adjustments that were necessary to make, we were able to start its construction.
With this pipeline we will be able to continue with the expansion of the production of Vaca Muerta.
Our company is in full expansion. YPF’s price, both locally and internationally, has multiplied by 4 in recent times, reflecting the progress of the company and investor confidence.
YPF cleared its debt and is making investments that expand its business.
Wages
During 2022, more than 13 million registered jobs were verified: the highest level in the series that began in 2012 with the highest female activity and employment rates and the lowest unemployment rates since 2004.
During 2022, workers and employers continued with free discussions on wages and working conditions in the framework of collective negotiations that took place as normal. The Minimum Wage Council worked and will continue to work. From the Government we maintain a fluid dialogue with the workers’ organizations and we permanently call for dialogue from the Economic and Social Council.
Source: Ambito
