According to a survey of 13 local analysts conducted by Reuters on Tuesday, the economic activity index in Argentina is projected to have shrunk by 6.9% year-on-year in March. This marks the deepest decline since 2020 and the fifth consecutive monthly contraction. The index is expected to have decreased by an estimated 7.2% from February, with year-on-year contraction estimates ranging from 4% to 10.3%.
Economist Pablo Besmedrisnik, director of consulting firm Invenomica, noted that sectors tied to domestic consumption, industry, and construction are continuing to decline at an intensifying rate, while sectors like mining and agriculture are experiencing growth. The country’s industrial production indicator showed a 21.2% slowdown year-on-year in March, as per government data.
Despite some positive signs in certain sectors, economists remain cautious about the economic outlook for the coming months. Federico Gonzalez Rouco, economist at Empiria Consultores, mentioned that while there may be a gradual recovery, a rapid turnaround in economic activity is not expected in the first half of the year. Concerns persist about inflation trends and risks associated with the foreign exchange market.
Official figures from Argentina’s statistics agency INDEC are set to be published on Wednesday, providing a more comprehensive view of the country’s economic performance.
