In turn, in the fourth quarter, GDP experienced a contraction of 1.4% compared to the same period of the previous year and 1.9% compared to the third quarter of the year.

The Argentine economy concluded 2023 in a recession scenario, with a drop in the Gross Domestic Product (GDP) of 1.6% year-on-year in 2023, as disclosed this Wednesday by the National Institute of Statistics and Censuses (Indec) of Argentina.

In turn, in the fourth quarter, GDP experienced a contraction of 1.4% compared to the same period of the previous year and 1.9% compared to the third quarter of the year.

The fall for the year as a whole is explained by the negative result of gross fixed capital formation, which contracted by 1.6% year-on-year, and exports, which fell by 6.7% from 2022. For its part, , private consumption grew by 1.1%, public consumption by 1.2% and imports up to 2.2%.

From the supply side, among the activity sectors that showed a recovery, hotels and restaurants stand out (7.5% year-on-year expansion), mining and quarrying (7.2%) and Education (2.7%). On the contrary, Agriculture, livestock, hunting and forestry fell, with up to a decline of 20.2%, and fishing (-6.1%).

FALL OF THE MANUFACTURING INDUSTRY IN THE FOURTH QUARTER

Regarding the fourth quarter, on the supply side, the largest decreases occurred in the area of manufacturing industry (6% year-on-year), electricity, gas and water (5.1%) and financial intermediation ( 4.4%).

From a demand perspective, gross fixed capital formation contracted by up to 6.3%, while there were drops of 1.5% and 3.2% in public consumption and private consumption, respectively.

Both exports and imports of goods and services fell in the fourth quarter compared to the same period in 2022, by 6.3% and 1.8%, respectively.