Argentina’s Economy Contracted Less Than Expected in January - BNN Bloomberg

(Bloomberg) -- Argentina posted a third negative economic print during President Javier Milei’s first full month in office, affirming views that the country likely entered into another recession at the start of the year. 

Economic activity fell 4.3% in January from a year ago, less than expectations for a 6.3% drop, according to analysts surveyed by Bloomberg. On a monthly basis, activity declined 1.2%, the third straight month in the red, according to government data published Tuesday. 

Read More: Argentina’s Economy Was Slumping Even Before Milei Shock Therapy

Milei’s shock therapy economic measures, including lifting price controls and a 54% currency devaluation, caused consumer spending to tank in January as workers’ wages suffered a record drop from the previous month. His austerity measures helped cool monthly inflation in January and February, albeit at extremely elevated levels. 

Economists surveyed by Argentina’s central bank forecast gross domestic product contracting 3.5% this year, according to a February poll. 

--With assistance from Rafael Gayol.

©2024 Bloomberg L.P.

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Argentina’s Economy Contracted Less Than Expected in January - BNN Bloomberg
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