Argentine economy contracts in January

Argentina's economy shrank 1.8% year-on-year in January, statistics agency Indec said.

Compared with December, activity dropped 0.1%.

The biggest fall was in the fishing sector, which contracted 40.3% on an annual basis. Construction dropped 13.7%

Mining and utilities registered growth of 0.2% and 4.4%, respectively.

Argentina’s economy is expected to remain in recession this year. It contracted 2.2% in 2019.

A national lockdown, implemented in March and due to last until at least 12 April to stem the spread of the coronavirus and save lives, will dent economic activity figures for both months and possibly beyond.

Rating agency S&P expects Argentina to emerge from recession in 2021. Growth would be partly driven by a favorable base effect. 

Argentina’s government is in the midst of debt restructuring talks with private bondholders. Resolving the debt situation is seen as vital to efforts to restore confidence in the bruised economy.