Economic Activity in Argentina Sees Significant Decline

BUENOS AIRES (Reuters) – Argentina’s economic activity fell 3.9% in June compared to the same month last year, according to official data released on Wednesday. This marks another contraction following a rare rise in May.

The June decline was double the 1.9% contraction expected by analysts surveyed by Reuters, with the maximum predicted drop in the survey being 3.2%.

Tough austerity measures implemented by libertarian President Javier Milei to control triple-digit inflation have adversely affected consumption and hit key sectors such as building and manufacturing.

Data indicates that construction dropped nearly 24% year-on-year in June, while manufacturing activity decreased by 20% for the month.

In contrast, Argentina’s grains-driven farm and ranching sector experienced the most substantial growth, with activity surging more than 82% in June.