Argentine economy shrank 9.9pc in 2020 due to Covid-19 pandemic

A man walks past Argentina's Central Bank, in Buenos Aires. — Reuters file pic
A man walks past Argentina's Central Bank, in Buenos Aires. — Reuters file pic

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BUENOS AIRES, March 24 ― Argentina's economy shrank by 9.9 per cent in 2020 due to the coronavirus pandemic, the worst fall in almost 20 years, the national statistics institute said yesterday.

The fall ― the worst since GDP plunged by 10.9 per cent in 2002 ― was nonetheless not as bad as the 11.8 per cent drop projected by the IMF.

The worst affected industries were hotels and restaurants (down 49.2 per cent), community, social and personal services (-38.9) and construction (-22.6).

Fishing (-20.9), domestic services (-18.6), transport and communications (-17), and mining exploitation (-10.5) were also hit hard.

Imports were also down 18.1 per cent, exports fell 17.7 per cent, consumption dropped 13.1 per cent and investment slowed by 13 per cent.

Manufacturing wasn't as badly hit but still shrank by 7.7 per cent.

On the flip side, financial mediation grew by 2.1 per cent and electricity, gas and water saw an increase of 0.9 per cent.

The worst period in 2020 was between April and May when measures to restrict the spread of the coronavirus were at their strictest. ― AFP

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