Argentina economic activity rebounds in August amid recession risks

Economic indicators for August show a rebound in activity in Argentina, though analysts warn it may not be sufficient to prevent a technical recession. According to the consultancy Equilibra, the economy contracted 0.5% year-on-year in August but saw a 1.5% month-on-month increase when seasonally adjusted. To avoid two consecutive quarters of decline, extraordinary growth would be required in September.

While non-primary sectors grew 2.2% monthly, reversing a four-month decline, primary sectors such as agriculture and fishing saw a 2.4% monthly drop. The recovery appears concentrated in specific areas like the automotive and steel industries, while consumption, credit, and construction sectors remain weak. Analytica reported a 0.7% expansion in August compared to July, though activity remains at its lowest levels of the year.