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Argentina’S Debt Burden Eases Amid Economic Challenges
(MENAFN- The Rio Times) Argentina's gross external debt decreased to $282.75 billion in the third quarter of 2024. The National Institute of Statistics and Census (INDEC) reported this 1.3% reduction from the previous quarter. The government's debt fell by $4.12 billion, driving the overall decline.
The debt composition reveals the government's significant role in Argentina's financial obligations. The general government owes 53.2% of the total debt, amounting to $150.41 billion. Non-financial corporations, households, and non-profit institutions account for 35.4%, totaling $99.99 billion.
The Central Bank of Argentina (BCRA) holds 10.1% of the country's debt, exceeding $28.4 billion. This figure increased by 4.1% from the previous quarter. The remaining debt belongs to deposit-taking corporations and other financial entities.
Currency distribution shows Argentina's reliance on foreign denominations. US dollars make up 68.8% of the debt, followed by Special Drawing Rights at 17.4%. Yuan, euros, and pesos constitute the rest, highlighting Argentina's complex financial landscape.
Argentina's economy contracted by 0.7% year-on-year in October 2024. This marks the fifth consecutive month of decline. The cumulative economic contraction from January to October reached 2.7% compared to the same period in 2023.
Ten major economic sectors experienced downturns in October. The fishing industry suffered the most, plummeting by 49.9%.
Construction followed with a 14.5% decrease, largely due to public works stagnation. Community and social services, manufacturing, and wholesale and retail trade also declined.
Argentina's Debt Burden Eases Amid Economic Challenges
However, six sectors showed growth. Mining and quarrying led with a 7.4% increase. Agriculture, livestock, hunting, and forestry grew by 2.3%. Financial intermediation saw a modest 1.8% rise.
Despite ongoing economic challenges, the government claims the recession has ended. This optimism stems from a 3.9% GDP growth in the third quarter compared to the second quarter. However, the year-on-year GDP still fell by 2.1% in the same period.
President Javier Milei's administration faces the task of balancing debt reduction with economic recovery. The coming months will test the effectiveness of their policies in addressing Argentina's complex financial situation.
The debt composition reveals the government's significant role in Argentina's financial obligations. The general government owes 53.2% of the total debt, amounting to $150.41 billion. Non-financial corporations, households, and non-profit institutions account for 35.4%, totaling $99.99 billion.
The Central Bank of Argentina (BCRA) holds 10.1% of the country's debt, exceeding $28.4 billion. This figure increased by 4.1% from the previous quarter. The remaining debt belongs to deposit-taking corporations and other financial entities.
Currency distribution shows Argentina's reliance on foreign denominations. US dollars make up 68.8% of the debt, followed by Special Drawing Rights at 17.4%. Yuan, euros, and pesos constitute the rest, highlighting Argentina's complex financial landscape.
Argentina's economy contracted by 0.7% year-on-year in October 2024. This marks the fifth consecutive month of decline. The cumulative economic contraction from January to October reached 2.7% compared to the same period in 2023.
Ten major economic sectors experienced downturns in October. The fishing industry suffered the most, plummeting by 49.9%.
Construction followed with a 14.5% decrease, largely due to public works stagnation. Community and social services, manufacturing, and wholesale and retail trade also declined.
Argentina's Debt Burden Eases Amid Economic Challenges
However, six sectors showed growth. Mining and quarrying led with a 7.4% increase. Agriculture, livestock, hunting, and forestry grew by 2.3%. Financial intermediation saw a modest 1.8% rise.
Despite ongoing economic challenges, the government claims the recession has ended. This optimism stems from a 3.9% GDP growth in the third quarter compared to the second quarter. However, the year-on-year GDP still fell by 2.1% in the same period.
President Javier Milei's administration faces the task of balancing debt reduction with economic recovery. The coming months will test the effectiveness of their policies in addressing Argentina's complex financial situation.
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