Argentina’s industry grows 6.3% YoY in January

Argentina’s industry grows 6.3% YoY in January

Various reports yielded similar conclusions

Argentina’s industrial output recorded a 6.3% interannual growth in January of 2023 and 9.6% against the same month of 2019, the Secretariat of Industry and Productive Development reported. It was the second-highest January, only surpassed by 2018. Against January 2022, the sectors that grew the most were Food and Beverages (+9.1%), Automotive (+24.8%), Metal Industries (+8.9%), and Metal Products (+15.2%).

In February, the automotive industry increased vehicle production in the country by 22.9%. In the first two months of the year, the increase was 30.5%. Vehicle exports also went up 19.7% from February 2022, for a 20.4% increase in the first two months of the year.

“The growth of the automotive industry is the result of a strong boost from the State from a law that was unanimously approved in Congress and the commitment of companies and workers to increase productivity and employment. The automotive sector is an example of what Argentina can achieve when there are agreements for the development and industrial capacity of the country,” a report from the Economy Ministry highlighted.

This document was consistent with others from private researchers, such as the Argentine Industrial Union’s Studies Center, who mentioned a 6.5% growth in industrial activity in 2022 compared to the previous year.

“Looking ahead to 2023, the year started with a good level of activity compared to the previous year, but with a low statistical drag and a visible slowdown in production. Given the election year and the macroeconomic challenges ahead, the focus will continue to be on the exchange rate gap, international reserves, and import controls, which will condition the dynamics of the activity,” it said.

CAME’s study stated that in January, production by the SME manufacturing industry rose 3.5% annually, completing four consecutive months of growth. “Four of the six large sectors measured grew. In the monthly comparison, activity remained practically the same with a slight increase of 0.3%.”

“A highlight of January was the large proportion of industries that are evaluating or have already decided to make new investments, which reached 46% of the companies in the survey,” CAME’s report noted.

“On the other hand, companies express concerns that require urgent solutions. In the first place, the administration of imports of inputs for domestic production represents a real and concrete restriction to the development of the local industry. Finally, it is worth mentioning the fear generated in the food, machinery, and transport material industry by the future of the agricultural campaign,” it added.

(Source: Ámbito)