The recession is still very, very much a thing. Not only are the figures not showing signs of recovery but, according to national statistics agency INDEC’s monthly report on the main sectors of the economy, they are in fact dropping more than expected. Industrial activity, for example, dropped 8 percent while construction shrunk by 19.2 percent. Let’s take a look at the damage.
The report states that industrial activity dropped 8 percent in October in comparison with the same month last year. This was the steepest fall this year, which has seen the same negative trend for nine consecutive months. The only month in which activity appeared to grow was January, and it was only by 0.1 percent.
The textile and automotive sectors were hit hardest, registering drastic declines of 26.7 and 19.1 percent respectively.
As for construction, activity dropped by 19.2 percent compared to October 2015 in what was the tenth consecutive month of bad news for the sector. Despite the high figure, it wasn’t even the worst plunge of the year: April was worse, with a 24.1 percent drop. As an average, the sector experienced a decrease of 13.5 percent every month this year.
“We can’t see any significant changes in the main areas (…) that point towards a solid recovery in production levels during the last quarter of the year,” explained a report by Orlando Ferreres consultancy.
In an attempt to boost consumption and give the economy a jump-start, the government is planning to pour AR $10.2 billion into Argentine people’s pockets during December. The sum will be distributed through year-end bonuses for those who are usually allocated money by the state — retirees, Universal Child Allowance (AUH) recipients and state workers.