Amid economic challenges, Argentina’s industrial leaders have reaffirmed support for President Javier Milei’s administration.
Despite a challenging economic climate marked by recession and job losses, the industrial sector stands with Milei.
The Unión Industrial Argentina (UIA) noted a 6.8% annual decline in industrial activity in February, though there was a slight 0.7% month-on-month increase.
This trend reflects broader economic strains, with an 8.3% drop in the first two months of 2024.
Increasing costs and waning demand from households and construction sectors raise concerns, the UIA reported.
Further, March figures indicate an accelerated decline, signaling rapid contractions in industrial performance.
UIA President Daniel Funes de Rioja highlighted these difficulties on CNN Radio, reporting about 5,000 job losses by March.
He urged the government to implement microeconomic measures to mitigate these issues.
During discussions on economic reforms, Funes de Rioja emphasized the vital roles of both the public and private sectors.
However, he expressed concerns about the Ley de Bases, a legislative measure progressing despite reservations.
He specifically criticized the Régimen de Incentivo para Grandes Inversiones (RIGI), which, while providing tax breaks to large firms, sparked backlash from SMEs over potential unfair competition.
Funes de Rioja views these reforms as steps towards modernizing labor practices and enhancing Argentina’s job creation capabilities.
Argentine Industrialists Rally Behind Milei Amid Economic Turmoil
At a recent UIA board meeting, leaders expressed deep concern over declining industrial activities, particularly affecting SMEs.
They stressed the urgent need for policies that can sustain demand.
Additionally, the Asociación de Industriales Metalúrgicos de la República Argentina (ADIMRA) criticized the reforms for lacking adequate responsibilities for beneficiaries.
They argued this deficiency could fail to positively impact the entire production system, thus risking macroeconomic stability.
These critiques reflect the complex landscape Milei’s administration must navigate to bolster Argentina’s economic and industrial sectors.