Argentine economy contracted 10% in 2020: official estimate

[BUENOS AIRES] Argentina's economy shrank by 10 per cent in 2020 due to the coronavirus pandemic, according to initial estimates published on Wednesday.

The Monthly Estimator of Economic Activity said the economy fell by 2.2 per cent in December, compared to the same month in 2019, although it was up by 0.9 per cent on November.

GDP rose in eight of the 12 months but was badly hit by the pandemic in April and May when a strict lockdown almost paralyzed economic activity.

The year on year drops for those two months were 25.4 and 20 per cent respectively.

The latest projection is an improvement on the government estimate of a 12.1 per cent fall it sent to congress in September.

Through 2020, the worst hit industries were hotels and restaurants (-48.6 percent) and community, social and personal services (-37.5).

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Only financial mediation (+2.1) and electricity, gas and water (+0.8) grew in 2020.

AFP