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10h ago

Argentina's Economy Sees First Monthly Contraction in 10 Months

March data reveals a 1.0% monthly decline in activity, though annual and quarterly growth remain robust, with policy changes and inflation fueling uncertainty for 2025.

Las subramas de la industria automotriz y autopartista están a la cabeza de la caída del empleo sectorial.
Para los economistas, la actividad crecerá menos del 5% estimado por el REM.
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Overview

  • Private data from Equilibra shows a 1.0% month-on-month decline in March economic activity, ending a ten-month streak of uninterrupted growth.
  • Despite the monthly drop, the economy grew 5.0% year-on-year in March and posted a 1.6% quarterly gain compared to Q4 2024.
  • Sectoral performance diverged, with agricultural activity rising 4.0% year-on-year and 1.8% month-on-month, while non-agricultural activity fell 1.2% month-on-month.
  • Equilibra revised its 2025 GDP growth forecast down to 5.0% from 5.5%, citing March's inflation acceleration, mid-April currency regime changes, and global economic challenges.
  • Additional indicators, including tax revenue declines and a 9.3% drop in consumer goods imports, signal growing uncertainty about Argentina's economic outlook.