GDP fell 5.4% in the first quarter

The country’s economic activity felt the impact of the quarantine during the last days of March. However, it was already beaten

The Gross Domestic Product (GDP) fell 5.4% in the first quarter of the year compared to the same period of 2019.

In relation to the October-December 2019 quarter, it fell 4.8%, according to official figures released by Indec on Tuesday.

The data for the first quarter reflect that, even though the coronavirus pandemic did not fully impact the level of activity – the quarantine was applied on March 20 – the Argentine economy was already in serious trouble.

The production of goods and services registered a 1.6% drop between January and March, compared to the previous quarter.

Investment experienced a decrease of 18.3% in the first quarter compared to the same period of the previous year, due to drops of 24.5% in the construction sector, 17.3% in other constructions, 13% in machinery and equipment and 12.9% in transport equipment.

Private consumption fell 6.6%, public consumption decreased 0.7% and exports of goods and services registered a decrease of 4.7%.

The sectors that had the greatest impact on it were the fall in fishing activity of 20.4%, construction with 20.8% and the activity of wholesale and retail trade which, due to the drop in consumption, contracted by 10.2% .

The first quarantine had a strong impact on trade.

Fernández: we are working “to lift Argentina”

President Alberto Fernández assured today that his Government continues to help those “most in need”, reactivating the economy, and noted that he works “every day to lift Argentina from the prostration it was in.”

Fernández invited with a message on his social networks to watch a video that was published by the Ministry of Productive Development led by Matías Kulfas, which explains “how the economy is reactivating.”

Those who want to know how the economy is working today and how we help those most in need during the pandemic, can find the answer in this video.“wrote the head of state on his social networks.

The video assures that “the economy began to move” and separates Argentina into two: the Buenos Aires Metropolitan Area where the quarantine is still somewhat strict and the rest of the country, where there are areas that are in “phase 5”, acting almost normally.

Bet on the interior industry

Inside the manufacturing industry is already fully empowered to work. And the activity went from 54% in April to 80% in June. From April to May, the activity of the steel industry went from 20% to 72%.

The short also points out that the food industry “never stopped producing food” and indicates that its consumption of electrical energy has remained constant since February, with some peaks due to higher productivity.

Later he says that the “reactivation also reached the stores” since at the beginning of the quarantine only half were enabled to serve their customers and today 85% are already working “and there are” 20 provinces where the opening comes to 95%. ”

Fernández and Kulfas:

Fernández and Kulfas: “The economic reactivation began,” said the president.

“The economic reactivation began, but the effects of the pandemic are felt and that is why we are multiplying state assistance,” says the video, noting that of the 45 million inhabitants in the country, 21 million receive income from the State. .

According to the Government, the Emergency Family Income (IFE) reached 8.4 million people and estimated that this prevented between 2.7 and 4.5 million people from falling into poverty and indigence, in the last two months .

It also indicates that the State paid up to half the salary in two consecutive months to 2.4 million private employees of 248,000 companies.

And zero rate loans reached 379,000 monotributistas and self-employed, while 136,000 companies received loans at a rate of 24% per year.

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