Argentina’s recession looks inevitable after August data
After July’s sharp contraction, economists broadly expected a strong rebound, but official data showed the opposite La entrada Argentina’s recession looks inevitable after August data se publicó primero en Buenos Aires Herald .
Argentina's economic outlook appears bleak as August data indicate the country is on track to experience a technical recession this quarter. According to the Monthly Economic Activity Estimator (EMAE), released by the national statistics agency INDEC, economic activity in July declined sharply by nearly 3% month-on-month, marking the steepest drop since the pandemic began.
Although economists anticipated a rebound in August, official figures showed a mere 0.1% increase on a seasonally adjusted basis, and a 1.7% year-on-year decline. The year-to-date growth was still 1.2% higher than the same period last year. Sectors such as mining and electricity showed strong growth, while others like manufacturing and wholesale retail trade contracted.
Analysts believe that economic activity would have needed to grow by 8.5% month-on-month in September to avoid a recession, a figure deemed highly unlikely. Even with a hypothetical 1.5% increase in September, the quarter would still register a 2.3% contraction.
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- Argentina’s recession looks inevitable after August data buenosairesherald.com
