The contraction is compared to November 2023 and marks the austerity policies of Javier Milei’s government

Economic activity in Argentina recorded a drop of 3.1% in December 2023 compared to the previous month. Annually (from December 2022 to December 2023), the drop was 4.5%. The data was released on Thursday (22.Feb.2024) by Indec (National Institute of Statistics and Census of Argentina). Here is the full report, in Spanish (PDF – 1 MB).

The contraction is the result of austerity measures by President Javier Milei’s government, representing the biggest drop since the peak of the covid-19 pandemic, in April 2020. The libertarian took over the Casa Rosada on December 10 last year.

Compared to December 2022, the reduction in economic activity in Argentina was 4.5%, driven by losses in the financial sectors (-12.2%), manufacturing industry (-11.9%) and commerce ( -8.5%). Agriculture, livestock, hunting and forestry and mineral exploration rose 8.1% and 6.2%, respectively.

Since taking office, Milei has fired federal civil servants, suspended works and cut subsidies, in an attempt to reduce the country’s fiscal deficit and inflation, which reached 254.2% per year in January.

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