In July, industrial activity continued to show positive numbers, as can be seen from the report prepared by the Study Center (CEU) of the UIA. In addition, it reflects that in the first seven months of 2021, the industrial sector accumulated an increase of 19.3% year-on-year and 5.3% compared to 2019.
According to the report, the biggest increases were seen in sectors such as Automotive, with an increase of 49.8% compared to 2020 and 47.5% compared to 2019, with good performance both in sales to the domestic market and in exports.
For its part, the Consumer electronics had an annual increase of 26.2% and 21.1% compared to the same month of 2019 from the boost in the production of air conditioners and cell phones.
Both sectors are in a recovery phase after the sharp falls of the previous years. There were also increases in the Non-metallic Minerals industry (18.8% annually and 10.5% compared to 2019) from the recovery of construction and household spare parts.
Silvio Zurzolo, president of the Association of Industrialists of the Province of Buenos Aires (ADIBA), maintains: “The numbers in general are good, growth remains moderate, in some areas better than others. There are many sectors that are equaling or exceeding the 2019 records, this is directly related to the apparent exit and recovery from the pandemic, “he said.
Along the same lines, he said: “We are optimistic, We believe that the conditions are in place to be able to go out and gradually recovering the production levels we were used to, but also we are aware that we need to put together a productive plan with social inclusion, and stop applying short-term palliatives, which do not touch the bottom of the problems that the industrial sector has been experiencing for a long time ”.
For the UIA, the front labeling project ‘demonizes’
“We expect more joint work between the State and the private sector, Chambers and Business Entities are available to assist in whatever is necessary. From this we left together or we did not leave, politics definitely has to understand that what is at stake is the future of the country, of the new generations, of the workers and their families ”, adds Zurzolo of the entity that groups the Buenos Aires industrialists (ADIBA), branch of the Economic Federation of the Province of Buenos Aires (FEBA).
The numbers of the metalworking
Meanwhile, the Metalworking sector expanded 17.5% year-on-year and exceeded the levels of 2019 (9.7%). Within the sector, there are branches with very good performance (mainly agricultural machinery and bodies, trailers and semi-trailers) although there are others with slower recovery.
In the case of Paper and paperboard, the sector registered a year-on-year increase (10.5%), far exceeding the levels of 2019 (10.6%). The increase is mainly due to the production of packaging paper, which has grown since last year as a result of the expansion of e-commerce, while items such as newsprint and printing paper continue below the levels of 2019 due to to the rise of digital media and virtuality.
The 3 IDEA proposals that aim to add 3 million registered jobs in the country
With some heterogeneity, there were also increases in Chemical substances and products (3.5% compared to 2020 and 24.2% compared to 2019) and Food and beverages (2.2% compared to 2020, but it remained stable compared to 2019). In the case of Chemicals and Substances, the rise was mainly driven by Paints, Basic Chemicals and Industrial Gases.
In the case of Food and drinks, pushed up the milling of oilseeds, non-alcoholic beverages, coffee and chocolate. Although it is a sector that was not so affected by the ASPO, there were some items that suffered restrictions, for which they presented worse performance due to a rebuilding of stock from the reactivation of production in July 2020: this is the example of wines and spirits. On the other hand, beef production continues to be affected by export restrictions.
Other sectors showed strong increases compared to the previous year and, although they are gradually showing improvements compared to 2019, in July they were still below the values of that year. Such is the case of Basic Metals with an annual increase of 32.5%, but a -4.9% drop compared to 2019, driven by the higher production of steel but slow recovery of aluminum.
Finally, Oil refining registered a year-on-year expansion of 4.4%, but production levels remain below 2019 (- 0.4%).
What happened in august
Available data for August indicate tMixed trends in economic activity data. All maintained increases compared to 2020, although against 2019 the situation was uneven.
The rise in imports from Brazil (29.2%), construction indicators (Construya Index 13.9%, Cement dispatches 4.2%) and Car production (24.2%) continued, while that exports to Brazil marked an increase of 21.1% in the same comparison.
On the other hand, the rise in the demand for electricity in CAMMESA was reversed (-0.2% compared to 2019) and the collection of VAT DGI (real) continued below the levels of July 2019 (-10.5%) in a context of delay in the reactivation of consumption and still slow dynamism of services.
On the other hand, particular situations began to affect certain activities such as car patents (-20.3% compared to 2019), where the contraction is linked to a restriction in the supply of some inputs and shortages at a global level.
You may also like