the economy collapsed by 5.8% in September



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INDEC Report

Thus, economic activity in the country accumulates a contraction of 1.5% in the first nine months of this year

LINDEC Monthly Indicators continue to set the tone for a rapidly declining economy, which complicates the expectations of a government that seeks to end the year "in peace" and, in addition, will soon face the weight of a new election campaign.

Economic activity declined 5.8% in September compared to the same month last year, due to the decline of industry, construction and commerce, the National Institute of Statistics and Census said Friday.

Thus, at the end of the third quarter of the year, the economy accumulated a drop of 1.5%, the agency added.

INDEC also indicated that the EMAE (Monthly Estimator of Economic Activity) index fell 1.9% in relation to August.

Economic activity has been negative for six consecutive months and two consecutive quarters with retractionThus, technically, it can be considered to have entered the recessive process. In addition, according to private projections, the trend will be extended.

Data released on Friday were worse than expected by analysts, as it was estimated a decrease of 4.2 percent per year in the economic activity of the ninth month of the year.

The drop in September was marked by a drop of 10.8% in industrial activity, 12.8% in Wholesale and Retail consumption and 2.9% in Civil Construction, which resulted in a decrease of 4.6%. % in the transport sector.

On the other hand, financial intermediation and the agriculture, livestock, hunting and forestry sectors have increased.

If the decline was not greater, it was due to a 2.2% increase in the agricultural sector due to the start of work on the fine crop, which, in the case of wheat, is expected to reach a harvest of 19.7 million. tons, one of the largest in history.

The Ministry of Finance estimated that this year the Gross Domestic Product (GDP) will fall 2.4% due to the "financial turmoil" from abroad, which subtracted the country's financing, currency devaluation and strong drought. which affected agriculture during the first four months of the year.

This entry into recession is the second during the presidency of Mauricio Macri, after which occurred shortly after assuming his mandate, which lasted nine months between March and November 2016.

For next year GDP will fall 0.5%, but it is estimated that there will be a recovery of economic activity from the second half.

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