Argentina could shed 40,000 construction jobs amid crisis, executives warn

Record ID: 1355370

  • Title: Argentina could shed 40,000 construction jobs amid crisis, executives warn
  • Date: 7th September 2018
  • Summary: BUENOS AIRES, ARGENTINA (SEPTEMBER 06, 2018) (REUTERS) (SOUNDBITE) (Spanish) CHAMBER OF CONSTRUCTION PRESIDENT, GUSTAVO WEISS, SAYING: "Month after month, we (construction sector) would take on people, create jobs. Also during 2017 and the first months of 2018, until the crisis in May changed things. That is when employment started to change, it was negative and now every
  • Embargoed: 21st September 2018 02:09
  • Keywords: Argentina peso economy construction IMF President Mauricio Macri Buenos Aires
  • Location: BUENOS AIRES, ARGENTINA / WASHINGTON D.C., U.S.A.
  • City: BUENOS AIRES, ARGENTINA / WASHINGTON D.C., U.S.A.
  • Country: Argentina
  • Topics: Government/Politics
  • Reuters ID: LVA0088WHPVER
  • Aspect Ratio: 16:9
  • Story Text: Argentina could shed some 40,000 jobs in its construction sector in coming months as high interest rates hurt financing and the government scales back projects to cut its budget deficit, according to industry executives and union leaders.
    With the central bank holding interest rates at a punishing 60 percent in an effort to curb high inflation and halt a slide in the peso currency, construction executives said there was no credit available to finance public works promised by President Mauricio Macri's government.
    The government announced a raft of austerity measures this week as it seeks to slash the deficit and restore confidence in the peso, which has lost 52 percent of its value so far this year. The government will slash spending and raise taxes in a bid to balance its primary budget next year - before debt servicing is taking into account - versus a previous target of a deficit of 1.3 percent of gross domestic product.
    The tough new measures came as Macri seeks to convince the International Monetary Fund to accelerate disbursement of loans under a $50 billion financing deal reached in June, amid some investors' concerns that Argentina may not be able to service its dollar debts next year.
    According to Chamber of Construction President Gustavo Weiss, high interest rates and the weakness of the peso were making it very difficult for local companies to get financing for projects or to buy imported materials.
    A sharp slowdown in Argentina's construction sector, already reeling from a major corruption scandal, would deal a heavy blow to an economy due to enter recession this quarter. It could also increase political pressure on Macri, who is expected to run for reelection next year.
    According to a central bank poll of economists published on Tuesday, Latin America's third-largest economy is expected to contract 1.9 percent this year.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2018. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register