In the first half of 2023, Argentina’s industrial sector saw a significant rise, recording its best performance since 2016.
The overall growth in the industrial activity index (IPI), which is based on energy consumption data provided by the Compañía Administradora del Mercado Mayorista Eléctrico (Cammesa), was 1.9% compared to the same period in 2022 and 12.8% compared to 2019’s first half.
June’s IPI increased by 0.6% year-on-year and 0.1% month-on-month, contributing to a 14.6% surge compared to December 2019.
The growth within the industrial sector is primarily due to the robust performance of the automotive and steel industries.
The first half of 2023 witnessed a 21.4% rise in the automotive sector compared to 2022, marking the highest production level since 2014.
Moreover, manufacturing employment also demonstrated growth, rising for 35 consecutive months.
Contrarily, overall economic activity experienced a downturn in May, marking its second consecutive monthly decline with a 5.5% contraction compared to May 2022 and a marginal 0.1% decrease from April 2023.
Consequently, overall economic activity in the first five months of 2023 is 1.3% lower than in 2022.
However, following a 3.5-year recession, Argentina registered a significant recovery of 10.4% in 2021, its highest since 2004, and sustained its growth with a 5.2% increase in 2022.