Weekly Report - 12 August 2003

BRAZIL | Industry demands action against recession. The national industrial forum (NFI), which represents the main industrial chambers and 32 private business associations, is demanding urgent government action to ward off recession. Their call comes just as Ibge figures show industrial production in June falling 2.6% from May, to the lowest level in 19 months. Car exports in July (an outlet from a sluggish domestic market) were down 11.2% from June. The industry association, Anfavea, still says it expects the total for the year to be 20% higher than in 2002, with production up by 3%.

ARGENTINA | More evidence of slowdown. Car exports in July were 0.9% lower than in June (and 30.4% below July 2002). Adefa, the automakers' association, says the main cause is the decline in Brazilian demand. Argentina's car industry is working at only 20% of installed capacity. One bright spot: domestic car sales are up 33.6% in the year, to the highest level in the last two years.

URUGUAY | Argentine investments return. The retreat that followed the financial crisis appears to have ended. Business consultants interviewed by El Paí­s say Argentine investors are back, in everything from the financial sector to holiday homes and rural real estate. They say Argentine investment activity is at its highest for four years.

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