They estimate that unemployment generates economic damage of almost $490,000 million

They estimate that unemployment generates economic damage of almost $490,000 million

The UADE Economics Institute estimated that the general strike carried out by the CGT this Thursday implies an economic cost for the activity of $489,272 billion or $544 million.

According to the preliminary estimate, this figure is equivalent to 1.1% of GDP in May or 24.3% of what would have been produced on a normal day of activity.

The report stated that “This calculation assumes that not all sectors and regions will lose equally during the strike, and that even 20.1% of what was initially lost is recovered within the month.” That is, it is an estimate based on a projection of what could be, both the GDP in May 2024, and the impact on the mentioned sectors.

In this sense, the UADE indicated that to calculate the impact of the strike, the effect on each of the economic sectors was estimated based on similar events in the past. Although he clarified that “Some sectors suffer practically no impact and others recover quickly.”

In this regard, he added that “there are other sectors and companies that suffer irrecoverable losses and others that, although they can recover a large part of what was lost, will do so in a much longer period.” That is why the calculation was made from sector to sector.

In this estimate, only direct losses were taken, net of recoveries that will occur within the month. For example, commerce will recover 35% and restaurants 0% of what is not sold.

For the UADE, the sectors that “They explain most of the negative impact, it is the manufacturing and construction sectors.” Both sectors will lose production that will be difficult to recover or will be recovered at higher costs.

Source: Ambito

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