In June, economic activity experienced a contraction of 0.7 percent compared to the preceding month, marking a second consecutive decline, according to the INDEC national statistics bureau. Financial services, wholesale, retail, and repairs drove 6.4% year-over-year economic growth despite a second monthly fall.
In contrast, the statistics agency reported a year-on-year surge in activity of 6.4 percent. In comparison to June 2024, 12 sectors within INDEC’s monthly economic activity estimator (EMAE) experienced growth, notably financial intermediation at 28.7 percent and wholesale, retail, and repair trade at 11.5 percent, which are particularly significant.
Three sectors experienced year-on-year contractions: fishing (down 74.6 percent); public administration, defence and compulsory social security schemes (down 0.7 percent); and other community, social and personal service activities (down 0.7 percent YoY). Argentina’s economy continues its contraction in June ahead of the midterm elections.
In response to the data, the Centro de Estudios Políticos y Económicos (CEPEC) think tank observed that “EMAE for June shows solid year-on-year progress, although the monthly contraction signals some fragility in the short-term dynamic.” “The commerce and industry sectors are sustaining the rebound, but the sharp fall in fishing and the slowdown in public administration reveal imbalances within the economy,” the consultancy firm added.