Argentinian GDP declines by 5.1 percent in first 3 months in 2024

(MENAFN) Argentina's economic landscape showed significant strain as the National Institute of Statistics and Censuses (INDEC) reported a notable 5.1 percent year-on-year decline in gross domestic product (GDP) for the first quarter of 2024. This contraction was primarily driven by substantial decreases in both private and public consumption, which fell by 6.7 percent and 5 percent, respectively. Investment also plummeted by 23.4 percent, while imports saw a sharp decline of 20.1 percent. In contrast, exports bucked the trend with a notable increase of 26.1 percent.

Comparing to the previous quarter, GDP decreased by 2.6 percent, reflecting ongoing economic challenges. The downturn was particularly pronounced in investment, which dropped by 12.6 percent, and imports, which declined by 12.1 percent over the same period, according to INDEC's findings.

The economic downturn's impact varied across sectors, with construction experiencing the most severe decline at 19.7 percent during the first quarter. The manufacturing industry contracted by 13.7 percent, while financial intermediation and wholesale/retail trade also saw declines of 13 percent and 8.7 percent, respectively.

Local reports, such as from Ambito Financiero, highlighted that this first-quarter contraction marks the most severe downturn since 2019, underscoring the depth of economic challenges facing Argentina amidst global uncertainties and domestic economic pressures.

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