The National State investment In the provinces it fell by 83.7% in real terms during the first half of the year, the lowest amount since at least 2017. In particular, the construction sector, i.e. Public Works, contracted by 86.2% compared to the first half of last year. Only Tierra del Fuego and Jujuy showed improvements compared to 2023, while La Rioja, which, given the drop in income from transfers, has already begun to issue its own quasi-currency, showed the sharpest decline of the provinces.
The data comes from Chaco Politikón. Specifically, they explained that the direct real investment of the National State in the provinces and CABA during the first half of 2024, totaled $131.496 million in its paid phase. Adjusted for inflation, that translates to a year-over-year decline of 83.7%.
“If we analyze the evolution of Real Direct Investment for the first semesters of 2017 to 2024, we can see that The amount executed in the current year is the lowest in the entire series“, the consultancy firm highlighted.
Broken down, the data shows that the other section, which includes machinery and equipment, safety equipment, cattle and others, totaled $48,399 million when in 2023 it was $51,823 million, thus registering a negative variation of 75.7% in real terms.
However, much of this decline is the result of the cessation of Public Works carried out by the Javier Milei administration. Specifically, Construction, which represents 63% of real direct investment, shows a real year-on-year drop of 86.2%.
Public works: Jujuy and Tierra del Fuego, the only two provinces with an improvement
In the case of construction, which in most provinces represents 90% of the State’s direct investment, Jujuy and Tierra del Fuego were the only two provinces with real increases (52% and 43.2% respectively) in the year-on-year comparison, “although slowing down month by month”Politikón noted.
They were followed by Río Negro, the province with the slightest decline in the period, with a negative variation of 26.9%. For its part, Chubut and La Rioja show the most significant falls: 99.3% and 99.4%, respectively.
In terms of participation of the total paid for constructions, it was added: “It is observed that between Buenos Aires, CABA, Entre Ríos, Río Negro and Chaco account for 57.4% of the national totalalthough only the first two represent 38.5%. At the other extreme, La Rioja and Chubut show the lowest levels of participation with 0.2% in each case.”
Source: Ambito
