The recession, which for now shows no signs of having reached a bottom, has already consumption to fall to the lowest level since 2001 and is causing a sharp drop in employment, with almost 400 thousand salary accounts closed: 340 thousand salary accounts in the first quarter and others 60 thousand between May and Juneaccording to sources in the financial system.
According to INDEC, unemployment rose from 5.7% in the fourth quarter of 2023 to 7.7% in the first quarter of this year.. It is estimated that 405,000 unemployed people were added in the first quarter of the year.
At the provincial level, In the province of Santa Fe, about 10 thousand formal jobs have been lost since the end of last year..
According to a report by Argentine SME Industrialists (IPA), Small and medium-sized businesses anticipate more suspensions and layoffs, with an estimated 300,000 job cuts in 2024. The majority of the affected workers are from the province of Buenos Aires, which has been feeling the impact of the economic crisis week after week.
On the other hand, Consumption continues to be hit by the recession and the loss of purchasing power, with a drop of 7.7% last May, according to Chamber of Commerce and Services (CAC). The most shocking data are those of Recreation and culture, with a drop of almost 43%, and Clothing and footwear, which fell 27%.
According to projections by the consulting firm C&T, The economy is expected to shrink by more than 4% this year and inflation is expected to rise to around 5% in June.
Source NA
#Argentina
