Due to the implementation of austerity measures, Argentina has entered a technical recession. The latest statistics from the INDEC agency reveal that the country’s GDP contracted by 2.6 percent during the first quarter of the year, marking the second consecutive quarter of decline. This meets the typical definition of a recession. President Javier Milei has implemented tough measures to restore fiscal order, but this has resulted in mounting job losses across the country.
The unemployment rate in Argentina has also increased significantly, rising to 7.7 percent in the first quarter. This is up from 5.7 percent at the end of last year, indicating a total of 300,000 newly unemployed individuals since the previous quarter. The combination of shrinking GDP and rising unemployment paints a challenging economic outlook for Argentina.
Many people are feeling the effects of these austerity measures put in place by President Milei and his administration. However, it is not all bad news as there are some sectors that are performing well despite the overall economic downturn.
For instance, agriculture remains one of Argentina’s strongest sectors with exports increasing by 8 percent compared to last year. Additionally, construction activity has been booming thanks to government investments aimed at promoting infrastructure development.
Despite these positive signs, many experts believe that it will take time for Argentina’s economy to fully recover from its current challenges.
“The road ahead will not be easy,” said economist Carlos Briceno. “However, if President Milei and his administration can maintain their commitment to fiscal discipline and continue making progress in key areas such as infrastructure development and job creation, then I believe we can see some positive changes.”
