Argentina’s manufacturing sector declined by 1.8% in 2023, with a sharp 12.8% drop in December, the national stats agency INDEC revealed.
This downturn highlights challenges in various industries. Key sectors like equipment and instruments saw a 6.2% fall.
The food and beverage sector decreased by 3.6%. Metal products and machinery dropped by 3.3%, and the wood and paper sector fell by 2.9%.
These declines show widespread impacts across manufacturing.
The peso’s devaluation in December had a significant effect, causing a 12.8% production decline.
Equipment and instruments faced a 42.2% drop, metal products 28.6%, and furniture and other industries 26.6%.
This points to the peso’s influence on manufacturing costs and prices.
Other areas, like non-metallic minerals and metals, saw an 18.7% reduction. Textiles and footwear dropped by 10.6%, and food production by 7.8%.
These changes reflect broader economic pressures.
The food sector was notably hit, with oilseed milling down 24.3% and wine production decreasing by 15.5%.
This shows shifts in agricultural processing and consumer demand. Conversely, textiles ended the year up 1.1% despite a December decrease of 2.5%.
Clothing and footwear also grew by 2.7% annually despite a 13.1% decline in December. These mixed results illustrate resilience in certain areas.
The construction sector contracted by 3% throughout the year, with a 12.2% fall in December.
This was due to less demand for building materials, highlighting Argentina’s economic challenges.
These trends matter as they reveal the interconnectedness of economic factors, such as currency value, consumer demand, and global market dynamics.
They show how Argentina’s manufacturing and construction sectors are navigating a complex economic landscape.