• Sat. Jun 15th, 2024

Argentina’s Economy Falters: Expects 6.9% Contraction in March; Industry, Construction Sectors Struggle While Some Show Growth

BySamantha Nguyen

May 22, 2024
Argentina Expected to Experience Sharpest Economic Decline in March Since 2020, Predicts Reuters

In March, Argentina’s economic activity index is expected to have contracted by 6.9% year-on-year, marking the fifth consecutive monthly decline and the deepest drop since 2020. According to a Reuters poll of 13 local analysts, the index is estimated to have slipped by 7.2% from February. The year-on-year contraction estimates ranged from 4% to 10.3%, indicating a significant downturn in the country’s economy.

Pablo Besmedrisnik, an economist and director of consulting firm Invenomica, highlighted that sectors related to domestic consumption, industry, and construction are consolidating and deepening their decline. However, there are some sectors showing signs of growth amidst the economic challenges facing the country. The industrial production indicator revealed a 21.2% slowdown year-on-year in March, according to government data.

Despite some sectors showing growth, economists remain cautious about the economic outlook for Argentina. They predict a gradual recovery in the second half of the year rather than a rapid turnaround in the first half. Federico Gonzalez Rouco, an economist at Empiria Consultores, emphasized that while inflation is decelerating, there are still risks associated with the foreign exchange market that need to be monitored closely.

Official figures from INDEC will be released on Wednesday shedding more light on the state of Argentina’s economy in March. With ongoing challenges in various sectors such as mining and agriculture, it may be a long and gradual road to recovery for South America’s third-largest economy.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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