Argentina's economy registers zero growth in July

Economic activity in Argentina registered zero growth (0%) in the last month of July, compared to the previous month, according to official sources this Monday (26).

The data released by the National Institute of Statistics and Censuses (Indec), which serve as a provisional advance to measure the quarterly variation of the Gross Domestic Product (GDP), represent a deceleration of economic activity in face of the variation positive monthly rate of 1.2% that had been verified in June.

On the other hand, the report indicates that economic activity grew 5.6% in July, compared to the same month of 2021, the 17th consecutive interannual increase.

In short, the interannual advance registered in July denotes a slowdown compared to the interannual growth rate recorded in last June (6.9%).

The accumulated economic growth in the first seven months of the year was 6.4%.

Indec data reveal that, of the 16 activities inc In the indicator, 13 productive sectors recorded year-on-year improvements in the seventh month of the year.

The sectors that grew the most were hotels and restaurants (+ 26,7%) and mining (+13,6%).

The sector industrial (5.6%) was the one with the highest incidence in the interannual variation of the economic activity indicator, followed by commerce (5.7%).

In turn, the three sectors that contracted the activity in July year-on-year were agriculture, livestock, hunting and forestry (-2.7%), fishing (-4.1%) and electricity, gas and water (-2.1%).

After three years of severe recession aggravated by the covid pandemic 19, the Argentine economy managed to recover 10, 4% last year.

The draft Budget 2023 presented this month includes a 4% economic growth guideline for 2022.

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However, for the private economists that the Central Bank consults monthly for its survey of expectations, the Argentine economy would grow 3.6% this year.

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