Overview of Argentina News for June 18, 2024

[Digital Nomad]

I follow BowTiedMara and he has some good information as he reposts from other local sources. Here is today's news.

Overview of Argentina

news:

Today, Milei meets with Sturzenegger to define what role he will have in the Cabinet, to advance a deeper reform of the State and the deregulation of the economy.

The IMF requested to lift fx restrictions and for the Government to put an end to the agro dollar. The economic team assured that they will maintain the special exchange rate for producers and the monthly devaluation of -2%.

The market expects an official dollar at $1,238 by the end of the year, 20% more than what the Government provided ($1,027). While the economic team insists on maintaining the devaluation rate of -2% monthly, dollar futures contracts show that an acceleration of the devaluation is expected.

Long weekend and Father's Day: the number of tourists dropped -65% and spending fell -80% compared to the same holiday last year. The average expense was $50,788 pesos per day.

IMF: after approving the disbursement of US$800 million, it anticipated that Argentina could return to the capital market in 2025 "or before."

Meat consumption dropped -19.5% in the first 5 months of the year compared to the same period in 2023, the worst record in the last 30 years: 44 kilos per inhabitant/year, according to CICCRA. Butchers talk about a major collapse, they say that some customers “only ask for $200 pesos for a bite,” and warn about closures.

According to a survey, Máximo Kirchner is the Argentine politician with the worst image: 76 points for negative image. Behind him is his mother, Cristina Kirchner. Of the 21 politicians in the survey, none approved. Patricia Bullrich and Victoria Villaruel lead among the "least bad." The survey also revealed that 49% of Argentines expect an economic improvement next year.

https://twitter.com/x/status/1803039076427182478

 

[Larry]

Ugly numbers with tourism drop off and also meat consumption dropping almost 20%. The worst record in 30 years! You know it's bad when butchers are talking about closing. Just a hint of what other small and medium size businesses are going to experience.

 

[Sylvia]

Ugly numbers with tourism drop off and also meat consumption dropping almost 20%. The worst record in 30 years! You know it's bad when butchers are talking about closing. Just a hint of what other small and medium size businesses are going to experience.

Yes my butcher told me the same thing. He say he never seen anything like this even after corralito. He said it's much worse now. Also, very bad when 51% of Argentines except conditions to et worse next year.

 

[Avocado]

If many butcher shop have to close you know situation is very bad in Argentina. That was always a very safe business to own over decades. Most Argentines don't expect things to get better any time soon.

 

[Betsy Ross]

On the bright side, CFK and her son have the worst public approval ratings. Progress for Argentina.

 

[Sunny]

Ugly numbers with tourism drop off and also meat consumption dropping almost 20%. The worst record in 30 years! You know it's bad when butchers are talking about closing. Just a hint of what other small and medium size businesses are going to experience.

But if you dig deeper, you find this: "In 2018, an average Argentine ate 57.8 kilograms of red meat per year, but in 2022 that number decreased to 47 kilograms per year, setting a record low since the 1920s." From this very interesting article:

Is Argentina eating less red meat due to its unstoppable inflation? - Argentina Reports

Meat industry representatives point to high inflation and cheaper alternatives to red meat as potential short-term reasons why Argentines are consuming less beef domestically. But are low beef diets a temporary phenomenon brought on by tough economic times, or is Argentina experiencing a...

argentinareports.com

And "According to a report by the Chamber of Industry and Commerce of Meats and Derivatives of the Argentine Republic (CICCRA), consumption of beef per inhabitant in 2021 was 47.6 kg / year (or -2.4kg / inhab / year)." From:

Meat consumption in Argentina fell despite cap on exports

Argentina has recorded a 4.8% decline in meat consumption per inhabitant despite caps on exports imposed by the administration of President Alberto Fernández, which allegedly sought to prioritize the domestic market.

en.mercopress.com

Despite the drop in domestic demand, the Argentine meat industry did not collapse in those years and it won't collapse now.

 

[import export]

But if you dig deeper, you find this: "In 2018, an average Argentine ate 57.8 kilograms of red meat per year, but in 2022 that number decreased to 47 kilograms per year, setting a record low since the 1920s." From this very interesting article:

Is Argentina eating less red meat due to its unstoppable inflation? - Argentina Reports

Meat industry representatives point to high inflation and cheaper alternatives to red meat as potential short-term reasons why Argentines are consuming less beef domestically. But are low beef diets a temporary phenomenon brought on by tough economic times, or is Argentina experiencing a...

argentinareports.com

And "According to a report by the Chamber of Industry and Commerce of Meats and Derivatives of the Argentine Republic (CICCRA), consumption of beef per inhabitant in 2021 was 47.6 kg / year (or -2.4kg / inhab / year)." From:

Meat consumption in Argentina fell despite cap on exports

Argentina has recorded a 4.8% decline in meat consumption per inhabitant despite caps on exports imposed by the administration of President Alberto Fernández, which allegedly sought to prioritize the domestic market.

en.mercopress.com

Despite the drop in domestic demand, the Argentine meat industry did not collapse in those years and it won't collapse now.

Thanks @Sunny. I doubt that the industry will collapse. Watched a few cycles there and it's always done ok.

Everyone is hoping the best for next year. Looks like it's evenly split on people that think it will improve vs. stay same or get worse. Time will tell.

 

[Larry]

If many butcher shop have to close you know situation is very bad in Argentina. That was always a very safe business to own over decades. Most Argentines don't expect things to get better any time soon.

Talk to all the butchers and they will tell you how slow things are. Also, many carmakers aren't selling cars. They are cutting back the work hours of their employees.

https://twitter.com/x/status/1803137489009258907