Economic activity in Argentina registered a 7,5% drop last November compared to the same month in 2017, according to the Monthly Estimator of Economic Activity of the National Institute of Statistics and Census (Indec).
The 7,5% drop in November is the largest year-on-year decline of 2018, a year marked by serious difficulties in the Argentine economy.
According to these figures, the index measuring economic activity registered a 2,3% drop in November compared to October, and between January and November 2018 it accumulated a fall of 2,2%.
After growing by 2,9% in 2017, Argentina's economy was hit last year by a combination of adverse factors, with severe instability in the financial market last April.
Following April, there were other financial shocks that caused a sharp depreciation of the Argentine peso, further accelerating inflation, which closed 2018 with a cumulative rise of 47,6%.
High inflation and the high interest rate set by the Central Bank as part of a more restrictive monetary policy have had a negative impact on variables such as consumption, financing, investment and economic activity in general.
According to official projections, shared by most private analysts, Argentina's GDP would have closed 2018 with a fall of 2,4%.
Analysts consulted by the Argentine Central Bank for its monthly market expectations report indicated this month that GDP will contract by 1% in 2019, before recovering by 1,9% in 2020.
#DataINDEC
Economic activity fell by 2,3% in November 2018 compared to October and by 7,5% year-on-yearhttps://t.co/yC6GDyiwew pic.twitter.com/MXcxXdCEFA- INDEC Argentina (@INDECArgentina) January 24, 2019
Source: Efe
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