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[BUSINESS] · Argentina · 79 sources

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Argentina economy faces industrial decline and consumption drops

Argentina is experiencing significant economic contraction across multiple sectors. The metallurgical industry reported a 4.4% year-on-year decline in July, with capacity utilization falling to 39.2%, a level described by ADIMRA as historically low. Mass consumption has also faced a downturn, recording a 2.7% year-on-year decrease in June and marking seven consecutive months of decline.

In the transport sector, bus usage in the AMBA region dropped by 19.1% year-on-year in July, representing 28 million fewer trips. This decline is attributed to fare increases that have outpaced inflation.

Regarding inflation, the Fundación Libertad y Progreso attributed the July increase to seasonal factors related to winter holidays. The organization projects that inflation could drop below 2% in August and continue to decelerate through the remainder of the year.

While most of the country faces a contraction in the number of employer companies, Neuquén has emerged as the sole province to record an increase in active firms, driven by activity in Vaca Muerta.

Entities

AAETA · ADIMRA · Argentina · BCRA · Central Bank of Argentina · Fundación Libertad y Progreso · INDEC · Javier Milei · Julián Neufeld · Neuquén · SIPA · Venezuela

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