Milei denies recession as J.P. Morgan forecasts Q3 contraction

Argentine President Javier Milei dismissed claims that his nation is entering a recession, despite economic data suggesting a slowdown in activity. During an interview on LN+, Milei questioned the reliability of seasonally adjusted data and accused some economists of negative bias towards his administration. He acknowledged a 2.9% month-on-month drop in economic activity in July, but called it a slowdown rather than a recession, highlighting Argentina's structural changes and deviating from the month-on-month figures.

Milei stressed that his government aims for four years of growth and highlighted the country's high levels of consumption, exports, and GDP. He downplayed concerns about rising unemployment, attributing it to resource reallocation and increased labor market participation. Despite J.P. Morgan forecasting a Q3 contraction, Milei expressed confidence in Argentina's economic trajectory, stating the government has secured funding through 2027 and dismissing the risk of default.