Argentina’s economy contracted 2.7% in the first ten months of 2024, driven by declines in fishing and construction sectors, amidst President Milei’s austerity measures. While a 0.7% drop occurred in October, Milei remains optimistic, citing signs of recovery in some sectors. The EMAE shows stable monthly activity and sectoral growth, indicating a mixed economic landscape.
Argentina’s National Institute of Statistics and Census (Indec) reported a contraction in the nation’s economic activity of 2.7% during the first ten months of 2024, with an observed decrease of 0.7% in October alone. This economic downturn was primarily influenced by significant drops in the fishing sector, which fell by 49.9%, and construction, which experienced a decline of 14.5%. These reductions are reflective of President Javier Milei’s austerity measures, which included the suspension of all public construction projects.
In addition to fishing and construction, other sectors such as community and social services saw a decrease of 4.3%, while the manufacturing sector contracted by 2.3%. The wholesale and retail trade also faced a decline of 2.1%. Despite these setbacks, President Milei has indicated optimism, citing a 3.9% recovery from the April-June period’s gross domestic product (GDP), despite the 2.1% decline observed in the third quarter of 2024. He claims that this trend signals the end of the recession.
Remarkably, the Monthly Economic Activity Estimator (EMAE) maintained relative stability over the past six months, with five sectors showing annual improvements. Notable increases included mining and quarrying, which grew by 7.4%, agriculture and livestock by 2.3%, and financial services by 1.8%. The EMAE presents a monthly overview of diverse productive sectors and is typically released with a delay of 50 to 60 days, providing economists with timely data to forecast upcoming quarterly changes.
The economic indicators released by Indec are crucial for understanding the state of Argentina’s economy amidst ongoing austerity measures. The drastic declines in specific sectors such as fishing and construction not only highlight the immediate impacts of the government’s fiscal policies but also paint a broader picture of the economic challenges facing the nation. The fluctuations noted in other sectors, along with President Milei’s assertions regarding recovery, reflect the complexity of Argentina’s economic landscape as it navigates through these challenging times.
In summary, the latest report from Indec illustrates a concerning trend of economic contraction in Argentina, driven by significant declines in crucial sectors like fishing and construction. Despite the challenges, President Milei remains hopeful about a potential recovery, citing improvements in other areas of the economy. The complexities revealed by the EMAE serve as a pivotal tool for understanding production sector dynamics and forecasting future trends in Argentina’s economic climate.
Original Source: en.mercopress.com
