Argentina's economy shrinks sharply in Q1 2024
Date
6/26/2024 9:48:59 AM
(MENAFN) Argentina's National Institute of Statistics and Censuses (INDEC) reported a significant 5.1 percent year-on-year decline in gross domestic product (GDP) for the first quarter of 2024. This contraction reflects challenges across key economic sectors, exacerbated by declines in consumption, investment, and imports, despite a notable increase in exports.
Private consumption decreased by 6.7 percent, while public consumption saw a 5 percent decline. Investment plummeted by 23.4 percent, underscoring reduced business confidence and economic activity. Imports also fell sharply by 20.1 percent, reflecting subdued domestic demand and economic slowdown.
In contrast, exports surged by 26.1 percent, driven by favorable global demand and export-oriented sectors. However, this increase was insufficient to offset the broader economic downturn.
Compared to the previous quarter, Argentina's GDP contracted by 2.6 percent, with investment and imports experiencing pronounced declines of 12.6 percent and 12.1 percent, respectively. These figures highlight ongoing challenges in stimulating domestic investment and consumption.
Sector-wise, construction was the hardest hit, declining by 19.7 percent in the first three months of 2024. The manufacturing industry contracted by 13.7 percent, while financial intermediation and wholesale/retail trade also saw notable declines.
This economic contraction marks the most severe first-quarter downturn since 2019, according to local reports, underscoring the urgency of economic reforms and measures to stimulate growth and stability in Argentina's economy amidst ongoing challenges.
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