Argentina’s Economic Activity Index Decreases by 6.9% in March, Facing an Uphill Battle to Recovery.

According to a recent survey conducted by Reuters, it is expected that Argentina’s economic activity index will have decreased by 6.9% year-on-year in March. This marks the deepest decline since 2020 and the fifth consecutive monthly contraction.

Economist Pablo Besmedrisnik from consulting firm Invenomica has noted that sectors related to domestic consumption, industry, and construction are continuing to worsen. However, there are some sectors such as mining and agriculture that are showing growth. The country’s industrial production indicator also revealed a significant 21.2% decrease year-on-year in March, according to government data.

Despite the challenging economic conditions, economists remain cautiously optimistic about a gradual recovery in the second half of the year. Federico Gonzalez Rouco, an economist at Empiria Consultores, stated that while they do not anticipate a rapid recovery in activity for the first half of the year, there are signs of inflation deceleration. However, risks related to the foreign exchange market continue to pose challenges.

According to official figures from statistics agency INDEC, which will be released on Wednesday, we can expect more information about Argentina’s economic performance in March. Hernan Nessi reported on the survey results and highlighted the ongoing economic challenges facing Argentina and the cautious optimism for a gradual recovery in the coming months.