Weekly Report - 9 March 2004

ARGENTINA | Exports sustaining auto industry. Production of motor vehicles in Argentina in February was up 17.6% on the previous month (and 42.8% on a year earlier). This expansion, however, is being sustained mainly by exports, up 42.6% in the month, to 10,250 units (equivalent to 72% of what was produced in the month). This said, in the first two months of this year exports were 6.9% lower than in the same period of 2003. 

ARGENTINA | Oil down, gas up. Oil production last year reached 43.1m cubic metres, a 2.3% decline on 2002. Exports of oil totalled 113.3m cu m, down 15%. 
Contrasting with this, gas production increased by 10.5%, to 50.7bn cu m, and exports by 15%, to 6.75bn cu m. [One cubic metre of oil equals 6.29 barrels.]

BRAZIL | Car production & sales down. Car production in the first two months of the year was 4.5% lower than in the same period of 2003; sales (at home and abroad) were down 7.9%. Export earnings, though, were up by 53% on 2003. The car manufacturers' association, Anfavea, expects exports to save the day this year. Indeed, it has raised its export-earnings forecast from US$5.8bn to US$6bn. The industry is using only 57% of installed capacity.

BRAZIL | High hopes for farm sector. This year's harvest of grains, legumes and oilseeds is expected to reach 132.9m tonnes, a new record 8% higher than last year's mark, according to the official statistical institute, Ibge. Production of soya will increase by 44.3%, to 58.9mt. Cotton output is expected to rise by 34%.

CHILE | Foreign investment slumps. Foreign investment in Chile last year totalled US$2.46bn, 35.5% less that in 2002 and the lowest level since 1993. Mining attracted 30% of the total -- the biggest sectoral slice. Worth noting: the figure for 2002 was much influenced by the sale of the Disputada mine, which accounted for 29% of the annual total (and ended up being repatriated).