Argentina’s Economy in Crisis: 5.1% GDP Drop and 14 Million Unemployed

Argentina’s economy contracted by 5.1% year-on-year in the first quarter, with unemployment reaching 44.3%, according to official data. The unemployment rate affects 14.2 million people, with 13.1 million employed and 1.1 million actively seeking work.

The National Institute of Statistics and Censuses of Argentina (INDEC) reported a sharp decline in consumption, industrial production, and investment, linked to a 57.3% year-on-year inflation rate and a drop in the purchasing power of salaries and pensions. This led to a 6.7% year-on-year decline in private consumption, the main component of Argentine GDP.

The December devaluation resulted in a significant shift in the external balance, with exports growing 26.1% year-on-year and imports falling 20.1%. Industry was the most affected sector, with a 13.7% decline, followed by construction, financial intermediation, commerce, transportation and communications, and real estate and rental activities.

However, agriculture and livestock, mining, and fishing industries showed growth, with agriculture and livestock increasing by 10% year-on-year despite a drought in 2023.

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