Argentina's Economic Rollercoaster: A Tale of Growth Amidst Austerity

Argentina's economic activity slightly grew in August compared to July, yet experienced its third consecutive year-on-year decline. Tough austerity measures have hit key sectors like construction and manufacturing hard. However, some areas, such as fishing and mining, reported significant growth despite the challenges.

Argentina saw a modest growth of 0.2% in economic activity for August compared to July, marking the third consecutive month of year-on-year contraction. The drop of 3.8% was less severe than analysts' predictions of a 4.9% fall, according to official statistics.

President Javier Milei's stringent austerity measures have succeeded in reducing inflation and stabilizing state finances but have adversely impacted several sectors. Notably, construction suffered the most in August with a 17% decline, while wholesale, retail, and manufacturing saw declines of 7.9% and 6.7% respectively.

In contrast, five sectors experienced growth, with fishing and mining leading the way. Fishing soared over 17%, while mining enjoyed a 6% increase, according to INDEC's report.

(With inputs from agencies.)