Argentina's Mileise: Construction, manufacturing collapse amid plummeting demand

[peppertree]

Argentina's Statistics Bureau (INDEC) reported that industrial activity registered a drop of 21.2% in March compared to the same month in 2023 - while construction plummeted 42.2%.

Both indicators are a clear example of the strong recession facing the economy, after the strong devaluation implemented on December 12th by the far-right Javier Milei administration.

The 118% devaluation - a record for any single day in Argentine history - promptly resulted in wholesale prices jumping an astonishing 54% in December alone.

All sixteen major industrial sectors saw declines - with electronic equipment, devices and instruments (–42.8%), furniture, mattresses and other (–40.4%), electrical machinery and equipment (–37.9%), and steel and aluminum (–34.0%) slowing most.

Construction, for its part, suffered a 42.2% collapse. “Such a contraction was only recorded by this indicator in the [foreign debt crisis] period 2001-02, and during the quarantine months of 2020,” economist Orlando Ferreres noted.

Ferreres' monthly gross domestic investment estimate showed a 22.3% annual crash in March.

Milei was elected in November on promises to jump-start the country's economy “after decades of populist disaster” by copying Reagan and Thatcher-era “pro-business” recipes.

Critics charge that his policies instead resemble those of the fascist, last dictatorship (1976-83), and of the neo-conservative Mauricio Macri (2015-19) - both of which left massive foreign debt and economic crises in their wake.

At: https://somostelam-com-ar.translate.goog/noticias/economia/continua-el-derrumbe-en-el-nivel-de-actividad-la-industria-cayo-en-marzo-212-y-la-construccion-422/?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp

A normally hectic pedestrian street in downtown Buenos Aires stands empty during today's general strike against far-right President Javier Milei's recessionary policies.

Led by a collapse in manufacturing and construction, economists estimate a 10% fall in monthly GDP in March - a downturn approaching that of the lockdown-induced nationwide stoppage in March-April 2020.

This recession, however, is viewed as unlikely to see the "V-shaped" recovery that followed the 2020 lockdown, with a projected drought in 2025 likely to prolong the ongoing "Mileise" for the hard currency-strapped country of 47 million.

[Judi Lynn]

1. Who would imagine a bad decision at the voting booths could bring such a rapid disaster?

So many short memories, or, maybe it's closer to dirty tricks during the counting, made possible through the fascist underpinnings which never quite disappeared nearly enough after the monstrous dictatorship.

Doesn't seem possible so much damage could be achieved so quickly. Milei must feel confident the people are too frightened to resist his plans.

History has shown already what lies ahead. This is horrendous.

[peppertree]

2. The little bastard is taking out what his father did to him on his own country

This is akin to imposing sanctions on your own nation - and nothing good will come of this.

Au contraire, it's just another disaster they'll have to recover from. This is, in fact, already trending almost exactly like the 1981-82 calamity - from which they've never really recovered.

Would it that everyone understood that like you do, Judi - rather than fall victim to wishful thinking, or neo-con propaganda.

https://www.democraticunderground.com/?com=view_post&forum=1116&pid=98034

Thanks as always, and All the Best.