The drop in the country’s economic activity in April after lockdown measures were put in place to stop the spread of the coronavirus is worse than the one seen during the four years of recession that led to the 2001-2002 crisis.
The staggering 26.4% drop was announced by the INDEC national statistics agency on Monday after it published its monthly economic activity index (EMAE) which each month roughly indicates the evolution of the country’s GDP. The April plunge is a direct result of the Fernández administration’s decision to impose a strict nationwide lockdown in mid-March to stop the spread of the novel coronavirus.
“In the first month and a half of the lockdown, the economic output fell more than in the four years that marked (until today) the worst recession in history, at the end of the convertibility. It will be difficult for the government to revert the consequences of this drop without a great agreement”, Prat Gay tweeted two days ago.
Argentina continues to face an extremely difficult economic scenario in the coming months and well into next year, as COVID-19 cases continue to rise in the capital and the Buenos Aires metropolitan area is once again forced to lockdown until July 17th in hopes that the strict isolation measures can curb the growing number of infections.