In a critical macroeconomic context deepened by the COVID-19 crisis, the Argentine automotive industry was one of the sectors that suffered most from the lockdown. However, exchange rate tensions and inflation expectations boosted vehicle sales. By 2021, we forecast a weak market recovery.
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Annual growth in industrial production (IP) was 3.4% yoy in June (cal. adj.) confirming our robust economic activity forecast for overall 2Q, as IP growth in 2Q reached up to 4.5% yoy from 1Q’s 2.1% reading. Our monthly GDP indicator (GBTRGDPY index at Bloomberg) nowcasts 5.1% YoY GDP growth in 2Q. We think that risks are o…