A study revealed that real investment levels in August in Argentina fell sharply, in what was recorded as one of the worst months of 2024. Specifically, the decline marked a decrease of 25.8% year-on-yearaccumulating a contraction of 21.5% for 8 months of the year.
The report was prepared by the Orlando consulting firm J. Ferreres y Asociados, which marked a drop in gross investment in Argentina. The decline in import of capital goodsthe collapse in the confidence and image of the Government and the persistence of inflationthe main reasons behind the collapse.
The fall in real investment
The consultant’s report Orlando J. Ferreres and Associates (OJF) recorded a drop in investment for August 25.8% year-on-year in terms of physical volume – without taking into account the effect of inflation. For the 8 months that have passed, this means a contraction of 21.5% which, when measured in dollars, estimates an investment of US$6,885 million monthly.
In detail, in terms of machinery and equipmentthe study observed a decrease of 23.7% annually. It was marked by the strong contraction in the import of durable production equipment, which reached record a collapse of 42.8%. In contrast, investment in national machinery showed a improvement of 4.6%.
On the other hand, investment in construction sector recorded, again, a contraction in August. The OJF report showed, in the annual comparison, a decrease of 27.6% which represents a new acceleration, after which It was the smallest drop in July (-16.3%). In accumulated terms for the eight months of the year, investments in the sector reflected a decrease of 24.6%.
The study concluded that investment levels for the month of August were influenced by the drop observed in the import of capital goods, in addition to an acceleration of the collapse in the construction sector. For the future, the report highlighted the RIGI regulations for September – the first month that will be in full force – and, in the medium term, he highlighted the influence that “the government’s decision to allow the Laundering funds can be used in productive investments“
The rebound in agriculture and mining in the General Activity Index
In another report, the consultancy analyzed the General Activity Index (IGA) where it was noted that, after marking an advance of 1% monthly in July, Economic activity fell again in August and registered a contraction of 0.6% compared to the seventh month in the seasonally adjusted measurement. In the annual comparison, the general index was negative 5.6%.
In this context, there were two sectors that registered growth in the annual comparison: agriculture and livestock. Both areas recorded a growth of 4.4% in the annual comparison in Augustalready well below the figures for the second quarter, and accumulate an expansion of 44.8% for the months that have passed. “The improvement continues to be explained by the agricultural sector, which in the eighth month increased 29.7%, while livestock farming contracted 4.2%, always on an annual basis“, they indicated.
IGA OJF.webp
consulting firm Orlando J. Ferreres y Asociados.
On the other hand, the study highlighted that “July’s momentum was not sustained in August in the manufacturing industry and watch for him eighth month a drop of 3.7% in the annual comparison and a decrease of 1.3% monthly in the seasonally adjusted measurement”.
In reference to the mining area, “This sector is established as the most dynamic in the economyrecording for August an expansion of 11.4% compared to the same month last year, and accumulating for the months under analysis a 6.7% improvement“. In detail, crude oil production increased 13.8% in August, and, for its part, the production of natural gas rose 6.0%.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
