Economic Activity in Argentina Declines

BUENOS AIRES (Reuters) – Argentina’s economic activity fell 0.7% in October compared to the same month last year, marking the fifth consecutive month of year-on-year contraction, as reported by the official statistics agency on Friday.

Analysts had predicted a 2.2% contraction.

The grains-rich country saw a 0.6% increase in economic activity month-on-month, following a decline the previous month.

Efforts to revive the struggling economy are ongoing, but strict austerity measures by libertarian President Javier Milei have led to reduced inflation and more stable finances, impacting various sectors negatively.

In October, the fishing sector experienced the most significant year-on-year decline, falling 50%, while construction dropped 14.5%.

Only six sectors showed growth in October. The mining sector led with a 7.4% increase, followed by agriculture and livestock, which grew 2.3%.

Despite recording the first quarter-on-quarter economic expansion since entering a technical recession at the end of 2023 during the July to September period, Argentina’s economy contracted once more in annual terms.