MercoPress. South Atlantic News Agency

Argentina's economy keeps falling, INDEC data shows

The various restrictive measures due to the coronavirus pandemic had an impact on the rebound trend of the economy

Economic activity in Argentina fell 1.2% monthly in April and accumulated three months of decline, according to data released Tuesday by the National Institute of Statistics and Census (INDEC).

The new figures also showed a deepening of the pace at which the economy is contracting. It fell 0.1% in February and 0.3% in March. Nevertheless, the new data showed a 28.3% recovery compared to the same month of the previous year.

The various restrictive measures due to the coronavirus pandemic had an impact on the rebound trend of the economy, which had begun in the monthly measurement since the partial reopening after the first quarantine.

According to the official report, concerning the same month of 2020, thirteen of the sectors that make up the Monthly Estimator of Economic Activity (EMAE) registered increases.

Construction rose 221.5% year-on-year and hotels and restaurants 207.7%. The manufacturing industry showed a 55.1% increase, while wholesale and retail trade and repairs grew 41.9%.

The Economy Ministry has admitted in a statement that the health situation had taken its toll: “The trend-cycle series remained stable concerning March, interrupting 6 consecutive increases. This dynamic is in line with the health situation developed in recent months, with an increase in the number of covid-19 infections and the consequent implementation of new restrictions on circulation.” Trend-cycle series do not take into account seasonal factors.

The Executive Branch highlighted the growth of 28.3% in year-on-year terms and said that it was the highest historical increase and the second most important since August 2019 but that “it is compared against a low base of comparison.”

In any case, the Economy calculations indicate that “the economy is only -4.4% below April 2019,” although only four items were at levels higher than those of April 2019: Commerce (+ 5.1%), Electricity, Gas and Water (+ 3.6%), Real estate, business and rental activities (+ 2.4%) and Industry (+ 2.2%). Also, Taxes were 0.8% above the level of April 2019.