Economic activity in Argentina recorded a 1.3 percent drop in July compared to the same month last year, but rose 1.7 percent from the previous year, the INDEC national statistics bureau reported on Wednesday.
So far this year, INDEC's Monthly Estimator of Economic Activity (EMAE) has recorded a 3.1 percent cumulative decline.
The data emerged on the same day that the Organisation for Economic Cooperation and Development lowered its 2024 growth forecast for Argentina, predicting a four-percent contraction.
According to the draft budget bill sent to Congress in mid-September by President Javier Milei's government, the economy will fall by 3.8 percent this year, but will grow five percent next year.
Beyond its estimates, INDEC reported that the agricultural sector improved 23.6 percent during July, mostly due to a low base of comparison left by last year's drought.
Mining and quarrying also increased 5.7 percent, boosted by lithium, gas and oil developments.
On the other hand, there were decreases of 5.6 percent recorded for industry, 14.8 percent for construction, 5.3 percent in wholesale and retail consumption, and 4.5 percent in hotels and restaurants.
Economy Minister Luis Caputo said last week that: ‘There may be volatility but there will be no crisis. That risk has been eliminated.
"When you explain, people understand, and when they understand, people support," Caputo said at the 140th Anniversary of the Rosario Stock Exchange.
"Sometimes people understand, sometimes they don't, but we will continue to make the effort to explain. Our programme has a logic behind it," he added.
– TIMES/NA
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