Argentina's Economy Reels Toward Recession, Testing Milei: 32,300 Businesses Closed, Consumption Down
Economists say Argentina's economy likely slipped into recession in the third quarter, testing President Javier Milei's austerity program a year ahead of the October 2027 presidential election. Since Milei took office nearly three years ago, inflation has fallen from about 200 percent to 30 percent, but the benefits have yet to reach much of the public.
Think tank Fundar counts some 32,300 business closures, roughly 6 percent of all companies, between December 2023 and July. Market researcher Scentia says consumption fell 2.7 percent in the first nine months of the year. National statistics agency INDEC data for August showed manufacturing down 3.2 percent year on year, retail and wholesale trade down 3.5 percent and construction down 2.5 percent. Ricardo Delgado of consultancy Analytica called it a moderate recession, with GDP down 0.6 percent in the second quarter and a further fall of about 1.5 percent forecast for the third.
A Giacobbe survey put Milei's approval at 36 percent in October, with disapproval at 56 percent. Milei has ruled out changes to his economic plan. Official third-quarter data is due in November, and economists forecast a slight rebound in 2027.
(Source: INDEC, Argentina)
Source: INDEC, Argentina
Published by GSM · USA (original Chinese edition)
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