Key facts
- Argentina's economic activity fell 1.4% in July year-on-year.
- The July decline was below the 1.8% growth projected by analysts.
- Economic activity had risen 2.7% in June.
- Wholesale, retail trade, and repairs led declines, falling 5.1%.
- Manufacturing dropped 4.6% year-on-year.
- Fishing sector jumped 425.5% year-on-year.
Argentina's economic activity contracted 1.4% in July compared to the same month a year earlier, according to data released by the INDEC national statistics agency. This figure fell short of the 1.8% growth anticipated by analysts polled by Reuters and marked a significant slowdown from the 2.7% expansion recorded in June.
Eight of the 15 tracked sectors experienced year-on-year declines in July. Wholesale, retail trade, and repairs saw a 5.1% decrease, while manufacturing dropped by 4.6%. Conversely, the fishing sector surged by 425.5% and mining and quarrying increased by 8.4%.
President Javier Milei's administration, facing a presidential election in 2027, has implemented sharp cuts in public spending to combat inflation, while aiming to stimulate growth in key sectors. The recent economic data adds to concerns about the country's economic trajectory, following projections that the poverty rate could rise to 35% by year-end.