Latest investment report of Orlando J. Ferreresone of the consulting firms most listened to by the Government of Javier Mileishows that the Real investment fell 27.5% in JuneThis is the largest contraction, even deeper than the same month in 2020 during the pandemic, when the decline was 15.3%.
In the first quarter, the contraction reached 22.2%according to the report, and it is estimated that the investment in dollars was barely US$6.330 million per month. This data also reflects that the economic activity is still very far from the “V” bounce.
How was the drop in investment by sector?
The investment in machinery and equipment recorded a contraction of 25.9% per year and in the cumulative for the first six months a decrease of 18.2%. In detail, the imported equipment recorded a drop of 40.7%, while those of national origin They gave in 9.8%.
Meanwhile, the investment in the construction sector contracted during June 28.8% in the annual comparison, accelerating its rate of decline compared to the last two months. For the first half of the year, the decline in the sector was 25.5% accumulated.
In this way, from Orlando J. Ferreresthey explained that the investment “shows no signs of recovery”. Although it did not pierce the floor it had reached in March, The second quarter of the year reflects a contraction of 4.2% compared to the first quarter, in seasonally adjusted terms.
Can investment improve after the government’s measures?
Regarding the outlook for the future, the consultancy firm highlighted that “some reaction in investment levels” could be seen thanks to the latest Government measures, which include the regulation of Large Investment Incentive Scheme (RIGI)as well as the recent Flexibility from the stocks For those who want to access the foreign exchange market for purchases abroadwhich allows to lower the financial cost of these operations.
The measures taken by the Government, “added to the possibility of a eventual exchange rate unification with devaluation of the official exchange ratecould encourage agents’ purchasing decisions,” he said. Orlando J. Ferreres. Although, in his conclusion, he emphasized that “Sustained growth in investment levels will only be possible when the context shows a consolidated recovery of economic activity and domestic demand.“.
In this regard, the Government announced on Tuesday that the Canadian mining company Lundin Mining and the Australian BHP will make a joint investment to develop two copper projects in the province of San Juan.
BHP will be made of fifty% of the Josemaria projectthe largest in San Juan and one of the most relevant and most advanced development in the country, which will contribute 690 million dollars to the Canadian. Meanwhile, a sum will be allocated in that order to joint development of the binational Filo del Sol copper, gold and silver deposit and also close to Josemaría.
Source: Ambito
