Cardiff,06 July 2020: Economists from Atradius expect the Covid-19 pandemic to deepen Argentina’s economic contraction this year with a ‘poor’ or ‘bleak’ outlook across most sectors
In its new Argentina Country Report, Atradius forecasts that GDP will contract 8.8% in 2020 and will only partly recover next year due to a weak business and investment climate.
The Atradius report details that, prior to the pandemic, Argentina has been in recession since 2018 with stubbornly high inflation at an annual rate of more than 50%, unemployment exceeding 10% and an increasing poverty rate affecting more than one third of the population. The coronavirus outbreak, along with subsequent social distancing and lockdown measures, has worsened the already strained economic situation with Atradius forecasting private consumption and industrial production will contract more than 10% this year, while investments are expected to decrease more than 18%.
Analysing the performance of key industries, Atradius has given a ‘bleak’ outlook to the consumer durables, machines/engineering, metals, steel and textiles industries. The automotive, chemicals, electronics, financial services, mining, paper and services industries have been rated with a ‘poor’ outlook while the agriculture and food sectors have a ‘fair’ outlook.
Tanya Giles, Head of SME for Atradius UK, commented: “Argentina’s economy was already struggling even before Covid-19 which put it on the back foot to battle the unprecedented challenges surrounding the pandemic. The impact on Argentina will be widely felt; both deepening and extending its economic contraction. That said, there are of course trading opportunities in any market but strong risk management is crucial. It’s important for businesses to monitor the economic situation and payment practices of individual customers closely – and in real time. If in doubt, seek expert advice and support and ensure your transactions are adequately protected.”
Note: The forecasts within Atradius’ reports are based on the current information prior to its publication. In a rapidly changing commercial and economic environment, the data is subject to change and the content will be reassessed by economists and updated where appropriate on an ongoing basis.
The full report and a suite of free economic research and trading reports are available on the Atradius reports page of the website https://atradius.co.uk. You can also follow @AtradiusUK on Twitter and AtradiusUK on LinkedIn.
ENDS
About Atradius
Atradius is a global provider of credit insurance, surety and collection services, with a strategic presence in over 50 countries. The credit insurance, bond and collection products offered by Atradius protect companies around the world against the default risks associated with selling goods and services on credit. Atradius is a member of Grupo Catalana Occidente (GCO.MC), one of the largest insurers in Spain and one of the largest credit insurers in the world. You can find more information online at https://atradius.co.uk
For further information:
Laura Windeatt
07801 980866
Caroline Hodges
029 2078 6091
Date: 06 /07/2020
Ref: ATR/LW/P/028