Latin American economic highlights, March 24, 2006

Saturday, 25 March 2006 10:47:05 (GMT+3)   |  
       

Argentina: Through changes in tax laws, Argentina's workforce will have a combined $486 million increase in real wages. The government hopes that this will help the purchasing power of the long-suffering Argentinean workers. It could, however, heat up inflation. Consumer Price Index (CPI): + 11.5 percent in February 2006 compared to February 2005 Industrial Production: + 8.5 percent in February 2006 compared to February 2005 (almost double January's rate of 4.8 percent!) Trade Balance (latest 12 months): + $11.3 billion in January 2006 Steel Production: 412'000 mt in January 2006, 446'000 mt in February 2006 Special Note on Unemployment: As reported before, the unemployment rate at the end of 2005 stood at 10.1 percent, which in many countries would be unacceptably high. Considering that Argentina's unemployment rate was 21.5 percent in 2002, the ten percent number actually looks really good. Brazil: CPI: + 5.5 percent in February 2006 compared to February 2005 Industrial Production: + 3.2 percent in January 2006 compared to same month last year Trade Balance: + $45.5 billion February 2006 for the last 12 months Current Account Balance: + $13.0 billion January 2006 for the last 12 months Inflation Forecast: Was revised down to 4.55 percent for 2006 after a sharp drop in February Steel Production: 2'577'000 mt in January 2006, 2'131'000 mt February 2006 Special Concern: The Real hit a five-year high against the US dollar in March. The rate at the end of last week was Real 2.12 to US$1 (2.75 one year ago). Exports could suffer because of the strong currency. Chile: CPI: - 0.1 percent in February 2006 compared to the same month last year. This came as an unexpected surprise. Inflation Rate: 4.1 percent in February 2006 for the last twelve months Gross Domestic Product (GDP): + 5.5 percent(annualized)in January 2006 compared to the same month 2005 (a strong number but below the median forecast of 5.8 percent) Trade Balance: + $9.7 billion in February 2006 for the last twelve months Current Account Balance: + $13.0 billion in January 2006 for the last twelve months Mexico: Official sources have announced that Mexico will invest $37.5 billion in the next 20 years to develop the Chicontepec oilfields. Inflation Rate: Fell to 3.75 percent in February 2006 for the last 12 months Trade Balance: - $6.0 billion in January 2006 for the last 12 months Steel Production: 1'200'000 mt in February Special Spotlight: In stark contrast to its neighbor to the North, Mexico's car industry has been humming. Approximately 166'830 vehicles were produced in February, an increase of 35.4 percent over the same month of 2005. Daimler Chrysler has announced that it will invest $1.0 billion in its Toluca assembly plant and will also develop two nearby industrial parks with its suppliers. Venezuela: Unemployment Rate: 10.7 percent February 2006 compared to the same month last year (it was 12.9 percent in January year-on-year) CPI: + 12.5 percent in February 2006 compared to the same month last year Car Sales: 21'222 in February 2006, an increase of 41 percent compared to the same month last year Crude Oil Production: Still going strong. In February, 75 drilling rigs were working, compared to 67 a year earlier. Steel Production: 410'000 mt in January; 370'000 mt in February Total Steel Production for South America (excl Mexico): 3'619'000 mt in January; 3'217'000 mt in February Total Steel Production for North America (incl. Mexico): 10'756'000 mt in January; 9'812'000 mt in February

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