Argentina's Economic Performance in Q3 2023

BUENOS AIRES (Reuters) – Argentina's economy recorded its first quarter-on-quarter expansion from July to September since entering a technical recession at the end of 2023. However, it contracted again in yearly terms, according to official data released on Monday.

Key Highlights:
– Gross Domestic Product (GDP) increased by 3.9% in the third quarter, seasonally adjusted, compared to the second quarter.
– This growth follows three consecutive quarters of decline.
– Year-on-year, GDP fell by 2.1%, marking the sixth consecutive contraction, slightly better than the analysts' prediction of a 2.6% decline.

Economic Context:
Argentina's economy is struggling due to a slowdown in industry amid a stringent austerity policy implemented by libertarian President Javier Milei. His administration has drastically cut social spending and initiated mass layoffs in the public sector. Although inflation remains substantial at 166%, economic activity has weakened, with poverty rates exceeding 50%.