The national industry has been facing significant challenges in recent years, with the INDEC manufacturing production index indicating that 2023 was the worst year in almost a decade. Only one month in 2019 and three in 2020 recorded lower than the average drop of 12.8% in December 2023. This decline has affected various sectors, including agricultural machinery, steel, electrical equipment, appliances, and base metals. The food and drinks sector of Argentina has also been impacted, particularly beef and oilseed grinding.
The construction industry is also facing a bleak outlook, with a drop of 12.2% in December 2023. Business expectations for employment, hours worked, and GDP all indicate a lack of optimism in the industrial sector. Retail sales figures have also shown an average drop of 28.5% in January compared to January of the previous year.
The Central Bank’s survey predicts that the price index will only return to single-digit numbers in July, indicating high levels of inflation. This is characterized by stagnation and large-scale inflation or stagflation, which has had significant impacts on vulnerable social sectors.
The lack of a clear plan to address stagnation and inflation raises questions about the government’s approach to economic challenges. Some see commitments to achieve balance in public accounts and end inflationary financing as steps in the right direction, while others question their impact on provincial subsidies for public transportation and their effect on low-income individuals with unstable jobs.
Ultimately, it is clear that significant challenges lie ahead for both the national industry and wider economy. The outlook remains uncertain, and urgent action is needed to address these issues before they become even more severe.
In conclusion, the national industry faces significant challenges that have affected various sectors such as agriculture machinery, steel industry