Argentina’s economic activity declined by 1.4% in July relative to the same month the previous year, according to data released by the country’s official national statistics agency on Thursday. The decline for Latin America’s third-largest economy fell short of the 1.8% growth anticipated by analysts and represented a drop from the 2.7% increase noted in June.
Of the 15 sectors monitored by the EMAE, eight sectors experienced year-on-year declines, with wholesale, retail trade and repairs leading the downturn at a decrease of 5.1% compared to the same period last year, followed by manufacturing, which recorded a 4.6% year-on-year drop. The remaining seven sectors recorded increases in July, as reported by the government statistics agency INDEC. The fishing sector experienced a remarkable year-on-year surge of 425.5%, while mining and quarrying saw a rise of 8.4%.
Javier Milei’s administration, preparing for the upcoming presidential election in 2027, has implemented significant reductions in public expenditure to combat inflation, while simultaneously aiming to stimulate growth in the industrial, consumer, and construction sectors.
