Argentina’s economy contracted 1.7% year-on-year in Q2 2024, deepening the recession, the country’s stats agency INDEC reports.This decline has led to a cumulative 3.4% drop in GDP for the first six months of the year.The economic downturn intensified between April and June, with a 1.7% decrease compared to the first quarter.Investment suffered the most significant impact, plummeting by 29.4% in the year-on-year quarterly measurement.

Imports also took a hit, falling by 22.5%.Both private and public consumption experienced substantial declines.

Private consumption decreased by 9.8%, while public consumption fell by 6%.These figures highlight the widespread impact of the recession on various sectors of the economy.Argentina’s GDP Shrinks 3.4% in First Half of 2024 Amid Recession.

(Photo Internet reproduction)Construction emerged as one of the hardest-hit industries, with a staggering 22.2% decline.The manufacturing sector followed closely, contracting by 17.4%.

Wholesale and retail trade also suffered, dropping by 15.7%.Financial intermediation and the hospitality industry faced significant challenges.

The former experienced a 9.8% decline, while hotels and restaurants saw a 4.5% decrease in activity.These figures underscore the broad-reaching effects of the economic downturn.

However, not all sectors faced decline.

Agriculture, livestock, hunting, and forestry saw an impressive 81.2% growth.Fishing and mining also showed positive trends, with increases of 41.3% and 6.6% respectively.Utilities and transportation sectors managed to grow despite the overall economic contraction.Electricity, gas, and water services increased by 2.8%, while transportation and communications saw a 2.2% rise.Argentina’s GDP Shrinks 3.4% in First Half of 2024 Amid RecessionThe preliminary official data indicates a prolonged economic recession in Argentina.This downturn coincides with the fiscal adjustment policies implemented by President Javier Milei’s government.The Central Bank of Argentina’s recent market survey predicts a 3.8% GDP decline for the year.As Argentina grapples with these economic challenges, the country faces an uncertain path to recovery.The government’s policies and global economic conditions will play crucial roles in shaping Argentina’s economic future.