A report by Indec shows Argentina’s economy contracted 2.7% year-on-year up to October 2024, with notable decreases in fishing, construction, and social services. President Milei remains cautiously optimistic, identifying signs of recovery in some sectors, despite the overall downturn.
On Friday, Argentina’s National Institute of Statistics and Census (Indec) released a report indicating that the economic activity in the country declined by 0.7% in October, leading to a cumulative interannual contraction of 2.7% for the first ten months of 2024. This downturn was notably influenced by significant declines in the fishing sector, which experienced a staggering drop of 49.9%, and the construction industry, which contracted by 14.5%. These reductions are largely attributed to President Javier Milei’s austerity measures, which included the suspension of all public works projects.
Additionally, the report highlighted declines in community and social services activities by 4.3%, manufacturing by 2.3%, and wholesale and retail trade by 2.1%. Despite these challenges, President Milei expressed some optimism, noting that the decrease of 2.1% in the gross domestic product (GDP) during the third quarter marked a 3.9% recovery compared to the previous quarter, suggesting that the recession may be concluded.
The Monthly Economic Activity Estimator (EMAE), which measures the monthly fluctuations across all productive sectors, has remained relatively steady for the past six months, with five sectors registering year-on-year growth. Notably, mining and quarrying saw an increase of 7.4%, agriculture, livestock, hunting, and forestry grew by 2.3%, and financial services rose by 1.8%. The EMAE serves as a critical indicator of economic health and reflects the performance of various sectors at the national level. Historical data shows significant growth, with a year-on-year increase of 10.3% in 2021 and an annual rise of 6.4% recorded in June 2022.
Argentina’s economy has been grappling with various challenges, compounded by President Javier Milei’s introduction of stringent austerity measures. The contraction in various sectors, notably fishing and construction, highlights the direct impact of these policies. The data provided by Indec emerged amidst ongoing concerns about the nation’s economic recovery, making it crucial for analysts and policymakers to scrutinize these figures closely.
In conclusion, the latest report from Indec reveals that Argentina’s economy is facing considerable challenges, with a significant contraction recorded in October and an overall decline in economic activity for the year. Despite the negative trends, some sectors have shown resilience and growth, suggesting potential avenues for recovery. President Milei’s interpretation of the recession may provide a glimmer of hope, yet the underlying issues require sustained attention and intervention.
Original Source: en.mercopress.com
