The recession deepens: GDP fell by 5.1% in the first quarter

Almost seven months after the start of the economic plan of Javier Milei’s government, the National Institute of Statistics and Census (INDEC) reported that the Gross Domestic Product (GDP) fell by 5.1% year-on-year in the first quarter of the year. In addition, it fell by 2.6% in the first three months of 2024 compared to the fourth quarter of 2023.It was also detailed that, compared to the previous quarter, private consumption decreased by 2.6% and public consumption by 0.8%. Likewise, gross fixed capital formation plummeted by 12.6%. In year-on-year terms, the construction sector was the most affected, with a decrease of 19.7%. It was followed by the manufacturing industry (-13.7%), financial intermediation (-13%), wholesale, retail trade and repairs (-8.7%) and net taxes and subsidies (-7.3%). Other sectors that recorded declines included electricity, gas and water (-2.2%), other community, social and personal service activities (-1.9%), private households with domestic service (-1.9%), hotels and restaurants (-1.7%), real estate, business and rental activities (-1.6%) and transport and communications (-1.1%). On the other hand, the items that registered the most increases were agriculture, livestock, hunting and forestry, which grew by 10.2%. It is followed by mining and quarrying by 8%, fishing by 3.2%, education by 1.6%, social and health services by 1.3% and public administration, defence and social security schemes of compulsory affiliation by 0.8%.

Original source in Spanish