Argentina's economy contracts 1.7% in Q2 2024

Argentina’s economy contracted 1.7% year-on-year in Q2 2024, deepening the recession, the country’s stats agency INDEC reports.

This decline has led to a cumulative 3.4% drop in GDP for the first six months of the year.

The economic downturn intensified between April and June, with a 1.7% decrease compared to the first quarter.

Investment suffered the most significant impact, plummeting by 29.4% in the year-on-year quarterly measurement. Imports also took a hit, falling by 22.5%.

Both private and public consumption experienced substantial declines. Private consumption decreased by 9.8%, while public consumption fell by 6%.

These figures highlight the widespread impact of the recession on various sectors of the economy.

Construction emerged as one of the hardest-hit industries, with a staggering 22.2% decline.

The manufacturing sector followed closely, contracting by 17.4%. Wholesale and retail trade also suffered, dropping by 15.7%.

Financial intermediation and the hospitality industry faced significant challenges. The former experienced a 9.8% decline, while hotels and restaurants saw a 4.5% decrease in activity.

These figures underscore the broad-reaching effects of the economic downturn. However, not all sectors faced decline. Agriculture, livestock, hunting, and forestry saw an impressive 81.2% growth.

Fishing and mining also showed positive trends, with increases of 41.3% and 6.6% respectively.

Utilities and transportation sectors managed to grow despite the overall economic contraction.

Electricity, gas, and water services increased by 2.8%, while transportation and communications saw a 2.2% rise.

The preliminary official data indicates a prolonged economic recession in Argentina.

This downturn coincides with the fiscal adjustment policies implemented by President Javier Milei’s government.