The general level of activity registered a drop of 3.1% year-on-year in April, thus accumulating a contraction of 6.3% for the first four months of the year.
According to the consulting firm Orlando Ferreres, The general level of activity registered a drop of 3.1% year-on-year in April 2024, which implies the fifth consecutive decline in the Milei era. Thus, it accumulated a contraction of 6.3% for the first quarter of the year. For its part, The seasonally adjusted measurement registered an expansion of 1.1% compared to the previous month.
“In April, economic activity showed an improvement compared to March, observing for the measurement without seasonality a rise of 1.1% monthly. In turn, The year-on-year drop showed a significant slowdown, affected by the agricultural context, which begins to compare the data from the second quarter with those from the worst moment of the drought, reflecting very high growth rates. The effect of the low comparison base also affected related sectors, such as wholesale trade and transportation,” this consultancy explained.
The other sector that shows dynamism of the economy is mining and quarries, driven by oil and gas production. In contrast, the sectors that contribute the most to the decline in the aggregate are the manufacturing industry, construction, retail trade and financial intermediation.
For the next few months, they explained, “we do not expect a quick recoveryalthough the sectors more oriented to the external market will continue to push positively, while sectors such as industry, construction and commerce could begin to show some improvement as the decline in inflation takes holda recomposition of income begins, progress is made with exchange rate unification and private credit is reactivated.”
Source: Ambito
