In addition, more than 60% of the companies consulted by the Indec estimated that the activity will continue to fall between June and next August.
Industrial production suffered a sharp drop of 26.4% in May compared to the same period in 2019, due to the impact of the quarantine applied to curb the coronavirus pandemic, and six out of ten businessmen believe that the situation will continue badly between June and August, INDEC reported on Tuesday.
The automotive sector was the hardest hit, with a drop of 73.8%, followed by motorcycles, 72.6%, and production of clothing and footwear, 67.9%.
In this complex scenario, 61.6% of the companies consulted by INDEC estimated that activity will continue to decline between June and next August.
The Industrial Production Index (IPI) suffered a drop of 16.3% in the first five months compared to the same period in 2019.
However, in May the index showed a positive variation of 9% compared to April, partly due to the relaxation of social isolation, especially in the interior of the country.
The industry had achieved a positive year-on-year change of 1.5% in last December, after almost two years of continuous recession, but from there it returned to negative indicators, until last April suffered a historical record of a drop of 33%. ,4%.
All manufacturing sectors linked to construction inputs fell sharply.
In the fifth month of the year, the Food and Beverages category registered only a 5.4% drop compared to May of last year, since it continued to be considered “essential”.
But input production for the construction industry collapsed 52.5%, the production of measuring devices and instruments fell 51.6% and machinery and equipment fell 34.3%, in the year-on-year comparison.
Clothing, leather and footwear manufacturing contracted 67.9%, steel and aluminum production 54.8%, oil refining decreased 28.5% and rubber and plastic products decreased 27, 8%.
Furniture and mattress production fell below the general level by 22.5%, tobacco production by 17.3%, chemical substances by 10.9% and wood and paper manufacturing by 9.7%, compared to May 2019.
Only 11.7% of the businessmen consulted estimated that production will increase between June and August, and the remaining 26.7% estimated that the level of activity will not change in that period.
Fernández called to “industrialize the country”
President Alberto Fernández He urged this Tuesday to build a “better capitalism” and pointed to the need for “industrialize the country” adding value to the raw materials that Argentina exports, by closing the meeting organized by the Christian Association of Business Leaders (ACDE).
He argued that “the first question one asks is why the pandemic was able to crumble economic empires.”
And he said he had an answer: “Many of those empires forgot the best of capitalism and clung to the worst, which is financial logic. We are seeing that many companies had a fictitious value linked to financial speculation.”
“When the financial manager was more important in capitalism than the production manager, he began to be less noble and weaker. These are the debates that we are going to face in the future, “he said.
Coronavirus and global crisis
Fernández, who, when opening his speech, wished a “prompt recovery” for his Brazilian counterpart, Jair Bolsonaro, who tested positive for the coronavirus test, said he had the “impression of living a unique time.”
“I just sent a note wishing a speedy recovery to the President of Brazil, who contracted coronavirus,” he said.
On the world economic situation, he noted: “We see how companies have entered into terminal crises that have forced states to intervene to keep them going.”
“Germany nationalized a laboratory that was working to cure the coronavirus. In Italy, the state had to assist Fiat,” the president told the businessmen.
He claimed to perceive that “all governments are closing in on their economies. To stop depending on the rest of the world and focus on domestic consumption “.
“I think that Argentina should industrialize to the maximum,” said Fernández.
“There is a review around the world about the sense of how a new development is achieved. The closure of the economies began with Brexit and with North American decisions. One sees a return to the free trade that globalization proposed. These are things that They do not depend on ourselves, but it does depend on ourselves how to build a new economy in Argentina, “he said.
He said that “Argentines know what our strengths are and what we want to do is enhance them. It is clear that there is a very important sector linked to agricultural-winning production. The world is going to need food. Isn’t it time we added value to those foods? Today we export more food for animals than for humans. ”
“This is an opportunity that we have. This that I am talking about does not collide with the industry. I think that Argentina should industrialize to the maximum. The great countries were those that developed industries on the basis of science and technology, which makes four years in Argentina are abandoned, “he said.
Find out the latest on digital economy, startups, fintech, corporate innovation and blockchain. CLICK HERE