BUENOS AIRES, Feb 23 — Argentina’s economic activity slid a larger-than-expected 4.5 per cent in December from a year earlier, the country’s statistics agency said on Thursday, underscoring the challenge for libertarian President Javier Milei who took office that month.

The result was significantly weaker than the 2.3 per cent drop forecast by analysts polled by Reuters ahead of the data. Milei, a right-wing outsider who has pledged to slash state spending to overturn a deep fiscal deficit, was inaugurated on Dec. 10.

Argentina’s economic activity was down 3.1 per cent in December versus a month earlier, and slid 1.6 per cent in the full year 2023. In the month, fishing, farming and mining activity was up, but outweighed by falls in manufacturing, finance and retail.

Economic activity numbers are seen as a useful early indicator of likely gross domestic product (GDP) results. — Reuters