Argentina Economic Activity Drops 1.4 Percent in July

Argentina's economic activity decreased by 1.4 percent in July compared to the same month last year, according to data released Thursday by the National Institute of Statistics and Census of Argentina. This decline represents a sharp reversal from the 2.7 percent increase recorded in June and fell short of the 1.8 percent growth projected by analysts.

The downturn was driven by declines in eight of 15 tracked sectors. Wholesale, retail trade and repairs saw the steepest drop at 5.1 percent, while manufacturing fell 4.6 percent. Some sectors showed significant growth, including mining and quarrying, which rose 8.4 percent, and the fishing sector, which experienced a 425.5 percent year-on-year jump.

President Javier Milei has implemented sharp cuts in public spending to combat inflation. His administration continues to attempt to stimulate growth within the industrial, consumer, and construction sectors despite the broader economic contraction reported in July.