Argentina's Economic Recovery Stalls Despite June Growth

Argentina's economy returned to growth in June, with a 0.8% increase in the Monthly Economic Activity Estimator (EMAE), but this rebound was not enough to reverse the previous decline. The second quarter of the year closed with an average contraction of 0.90%. The report by LCG consultancy highlights that there is currently no clear growth engine for economic activity, with investment falling for four consecutive quarters and consumption conditioned by salaries that can only match inflation at best. The main hope for traction lies in net external demand, but beyond sectors like agriculture, mining, and oil, the rest of the exports grow at a slower pace. The economy is expected to continue showing alternating months of growth and decline, with a pace of expansion barely above 2% annually.