Argentina industrial output sinks 21% amid Milei austerity, worst since pandemic

Argentina's industrial output plunged 21.2% in March from a year ago, the INDEC statistics agency said on Wednesday, the worst slide since the depths of the Covid-19 pandemic as libertarian President Javier Milei pushes a tough austerity package.

The new government, that inherited a tough economic crisis when it took over in December, is caught between stabilizing the South American country's wobbly finances with cost-cutting and heading off a deep potential recession. Milei's "chainsaw" program has helped the country post rare fiscal surpluses at the start of the year and allowed the central bank to rebuild reserves, but the economy is suffering, with consumption, construction and manufacturing down sharply.

INDEC said that furniture manufacturing was down over 40% in the month, electronics and tools almost 43%, while metal and machinery products were down nearly 33%. Non-metal minerals and base metals was down some 35%, and cars and transport slid 25%.

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