Ibge reports that expansion was recorded in 13 of the 20 industrial sectors surveyed. The greatest increases in August were in mechanical products (2.9%), textiles (2.9%) and the auto industry (2.3%). The upturn has been attributed chiefly to the lowering of interest rates and government measures to provide easier access to credit for purchases of home appliances and cars.
ARGENTINA | Setback on the farm front. Drought in Argentina's main grain-producing regions has led to the loss of about a quarter of the expected 2003/04 wheat harvest: originally forecast at 15m tonnes (roughly in line with production over the past seven years), it is now only expected to reach 11.2mt — the worst yield in a decade. This could translate into a loss of about US$600m in exports.
ARGENTINA | Sustainability of debt burden in doubt. Even if Argentina gets its bondholding creditors to accept the proposed 75% `haircut', it will face an annual debt-servicing burden of more than US$10bn over the coming 15 years. Treasury secretary Carlos Mosse says it will have to borrow in order to cope, and raises the prospect of a return to international capital markets in the medium-to-long term. Economy minister Roberto Lavagna has reckoned that it will take more than four years to create the conditions for a return to the markets.
End of preview - This article contains approximately 300 words.
Subscribers: Log in now to read the full article
Not a Subscriber?
Choose from one of the following options
