2024-08-26 06:43:12
BUENOS AIRESThe Argentine economy ended six months of year-on-year contraction by experiencing a recovery of 2.3 percent in May compared to the same month last year, according to data released today by the National Institute of Statistics and Census (Indec).
The South American country also reported a 1.3 percent increase compared to April, marking the first monthly improvement since September 2023.
Still, economic activity fell 2.9 percent in the first five months of the year, the state agency added.
Despite still high inflation showing signs of slowing and declining consumption due to the government’s austerity policies, the agricultural sector contributed significantly to the recovery of the economic indicator with a year-on-year increase of 103.3 percent.
According to the INDEC report, ten of the 16 divisions measured registered year-on-year declines in May, with notable declines in construction of 22.1 percent, in manufacturing of 14.2 percent, in trade of 11.4 percent and in fishing of 10.5 percent.
In the first quarter, Argentina’s gross domestic product (GDP) fell 5.1 percent year-on-year amid the adjustment program implemented by President Javier Milei’s government.
The sharp contraction in the first six months was explained by a decline in private and public consumption, coupled with a sharp 23.4 percent decline in investment (gross capital formation) and a 20.1 percent drop in imports.
By: XINHUA