Argentina’s economic activity dropped by 8.4 % in March compared to the last year, as per the country’s official statistics agency, INDEC.
Since 2020 this is the sixth consecutive monthly loss and the biggest reduction. The March dip surpassed market estimates of a 6.9 % drop. The contraction demonstrates the impact of libertarian President Javier Milei’s strict cost-cutting policies since his administration started in December.
Milei has implemented a program aimed at reducing skyrocketing poverty and lowering an annual inflation rate approaching 300 %.
According to INDEC data, nine industries had year-on-year reductions, with construction falling 29.9 % and the manufacturing industry losing 19.6 %.
These sectors were the most damaged, significantly to the overall drop in economic activity. The March reduction comes after year-on-year drops of 3.0 % in February and 4.1 % in January, indicating a continuing downward trend.
Argentina’s economic activity fell by 5.3 % overall in the fiscal year ended March. The economic downturn shows the difficulty that President Milei’s administration faces as it attempts to stabilise the country’s economy under tough fiscal reforms.
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