MercoPress. South Atlantic News Agency

Argentina’s economy worst monthly performance in seven years

Slumping industrial production and construction are threatening Latinamerica’s third largest economy

Argentina’s economy had its worth monthly performance in almost seven years in May amid slumping industrial production and construction. Economic activity was unchanged in May from a year earlier, the first time the government hasn’t recorded growth since November 2002. The economy rose 0.1% in May from April, according to the national statistics agency, Indec.

President Cristina Fernandez de Kirchner has vowed that South America’s second-biggest economy won’t fall into recession this year. After five years of “Chinese rate” growth of at least 6.8% a year, Argentina’s economy is expected to shrink this year.

The government earlier reported that industrial production fell 1.7% in May from a year earlier, while construction declined 4.6% over the same period. Indec monthly reports are questioned by economists and politicians, including Vice President Julio Cobos, who say the institute underestimates inflation and overstates production and growth.

Economy Minister Amado Boudu said on Friday that the government is working to “improve” the country’s institutions, including the statistics agency, without giving more details.

“It’s part of the president’s agenda, it is part of my agenda” Boudou said during an interview a Buenos Aires radio. “We are going to do something to improve all the institutions. We’re going to work with Indec.”