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In recession since the third quarter of last year, in Argentina had, on Tuesday, 5 years, indications that the economic crisis deepened further. The industrial production of the country fell by 14.7% in December compared to the same month of the previous year, according to data from the National Institute of Statistics and censuses (Indec). This was the eighth consecutive month of steady decline and the worst result in the sector under Mauricio Macri's government. During the year, the industry recorded a decline of 5% .
The sector's result in December is also worse than that projected by badysts heard by Trading Economics, which predicted a 7.6% decrease.
The Argentine statistical agency released Tuesday that construction had fallen 20.5% in December compared to the same month in 2017. In the country, the construction sector is not caught in in the sector, as in Brazil.
However, during the year, construction rose 0.8%, driven by the results of the first months of 2018, when peaks were close to 20%. Construction, especially public works, had been the main driver of Argentinian economy growth in 2017, when GDP grew by 2.9%.
However, shortly after presenting this result, the country began to lose steam with the rise in the US interest rate – which made US investments more profitable and those of emerging countries less attractive. Bad fiscal results and a tax on financial investments made by foreigners added to the scenario that led the investor to flee Argentina. The consequence of all this has been a devaluation of the Argentine peso of more than 50% and an inflation of 47.6% over the year, as well as projections of a 2.5% fall in GDP in 2018.
By 2019, economists estimate a new drop in Argentine GDP, which should be between -1% and -1.5%.
Brazil
The poor performance of the neighboring country's economy began to hurt Brazil at the end of last year. In the fourth quarter of 2018, Brazilian industry decreased by 1.1% over the same period of the previous year, mainly due to the decline in exports to Argentina. Only sales in the automotive sector decreased 48.1% in December compared to the same month in 2017.
Based on these data – and mainly because of the lack of prospects for improving the quality of the cars. Argentina's economy – the Brazilian Institute of Economics, Foundation Getulio Vargas (Ibre / FGV) has revised its forecast downward for the growth of the Brazilian industry this year. In December, Ibre estimated an increase of 2.5% for the sector. Now he predicts 1.8%
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