Argentina’s economy contracted by 2.7% through October 2024, with notable declines in fishing and construction sectors. Austerity measures under President Javier Milei contribute to these figures, although he perceives signs of recovery in the economy. Some sectors, like mining and agriculture, experienced growth amidst the overall downturn.
The latest report from Argentina’s National Institute of Statistics and Census (Indec) indicates a decline in the nation’s economy, with a 0.7% decrease in economic activity reported for October. This downturn contributed to an accumulated interannual contraction of 2.7% over the initial ten months of 2024, primarily influenced by significant reductions in the fishing and construction sectors, which plummeted by 49.9% and 14.5% respectively. These contractions have occurred amidst President Javier Milei’s stringent austerity measures, including the suspension of public works projects.
Further analysis of the report revealed a decline in community and social services (4.3%), manufacturing (-2.3%), and wholesale and retail trade (-2.1%). Despite these declines, President Milei expressed optimism, suggesting that the 2.1% contraction in gross domestic product (GDP) for the third quarter was a sign of recovery from the previous April-June period, interpreting it as an end to the recession. Meanwhile, the Monthly Economic Activity Estimator (EMAE) showed persistence over six months, with improvements in five sectors, notably mining and quarrying (7.4% growth), agriculture (2.3%), and financial services (1.8%).
Argentina has been undergoing a challenging economic period, exacerbated by austerity measures implemented by the current administration. The Indec’s report highlights the repercussions of these measures on various sectors of the economy, particularly in areas that have traditionally been significant contributors to economic activity. The fishing and construction sectors have been notably impacted, alongside a general decrease across other critical industries. President Milei’s perspective on the economy indicates a contrasting outlook in face of the statistical data showing adverse contractions.
In summary, Argentina’s economy is experiencing significant challenges with a reported 2.7% contraction through the first ten months of 2024, driven mainly by downturns in key sectors alongside President Milei’s austerity policies. Despite these adverse conditions, some areas within the economy have shown mild growth, leading to a degree of optimism from the administration. Continued monitoring of the Monthly Economic Activity Estimator will be crucial in assessing potential recovery paths for the economy.
Original Source: en.mercopress.com
