MercoPress. South Atlantic News Agency

Indec says Argentina's economy contracted 2.7% through October

Milei says the recession is over

A report released Friday by Argentina's National Institute of Statistics and Census (Indec) showed that the country's economic activity fell by 0.7% in October for an accumulated 2.7% interannual contraction in the first ten months of 2024, driven particularly by fishing (-49.9%) and construction (-14.5%) amid President Javier Milei's austerity plans which included halting all public works.

Community and social services activities decreased by 4.3%, the manufacturing industry contracted by 2.3%, and wholesale and retail trade by 2.1%, the Indec also mentioned.

Overall, Milei was optimistic, given that the 2.1% drop in the third quarter's gross domestic product (GDP) also represented a 3.9% recovery from the April-June period. Hence, the president considered the country's recession to be over.

The Indec's Monthly Economic Activity Estimator (EMAE) remained relatively stable for six consecutive months, with five sectors posting interannual improvements. Mining and quarrying grew by 7.4%, agriculture, livestock, hunting, and forestry by 2.3%, and financial services by 1.8%.

The EMAE reflects the monthly evolution of the economic activity of all the productive sectors at the national level. Published with a delay of 50 to 60 days from the end of the reference month, it allows economists to foresee quarterly rates of change. In 2021, the EMAE recorded a growth of 10.3% year-on-year, while in June 2022, it showed an increase of 6.4% year-on-year.