Argentina’s industrial and construction sectors have been hit hard by the country’s ongoing economic downturn, with both sectors experiencing sharp declines in output and employment.
Industrial Sector
The industrial sector has been particularly hard-hit, with output falling by 10.2% in the first half of 2019, according to the latest data from the National Institute of Statistics and Censuses (INDEC). This decline was driven by a sharp drop in demand for manufactured goods, both domestically and internationally.
The automotive industry has been one of the hardest-hit sectors, with production falling by more than 30% in the first half of 2019. This decline has been caused by a combination of factors, including the peso’s devaluation, rising interest rates, and a decline in consumer confidence.
Other sectors that have been hit hard by the downturn include textiles, clothing, and footwear, as well as machinery and equipment.
Impact on Employment
The decline in industrial output has led to a sharp increase in unemployment, with the industrial unemployment rate rising to 12.3% in the first half of 2019. This is the highest level of industrial unemployment since 2016.
Construction Sector
The construction sector has also been hit hard by the economic downturn, with output falling by 9.2% in the first half of 2019. This decline was driven by a sharp drop in demand for new construction projects, both residential and commercial.
The decline in demand for new construction projects has been caused by a number of factors, including the peso’s devaluation, rising interest rates, and a decline in consumer confidence.
Impact on Employment
The decline in construction output has led to a sharp increase in unemployment, with the construction unemployment rate rising to 10.5% in the first half of 2019. This is the highest level of construction unemployment since 2017.
Conclusion
The industrial and construction sectors have been hit hard by Argentina’s ongoing economic downturn. Both sectors have experienced sharp declines in output and employment, and the outlook for the future remains uncertain.
The government has taken some steps to address the economic downturn, including devaluing the peso and raising interest rates. However, it is unclear whether these measures will be enough to stimulate growth in the industrial and construction sectors.
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E. Thompson