Friday, June 14, 2024

ECONOMY | 30-05-2024 17:34

Argentina's government says recession has hit rock bottom, economy starting to recover

Presidential Spokesperson Manuel Adorni says drop in economic activity is the cost of having more honest prices.

Argentina’s Government believes that the recession hit rock bottom in March and April and stated that there are signs that activity is starting to bounce back.

“We believe that the lowest point is behind us or happening now and some indicators start to show light at the end of the tunnel,” said Presidential Spokesperson Manuel Adorni.

President JAavier Milei’s spokesman considered positive data that “some wages are starting to beat inflation, albeit marginally,” and some sectors “are starting to gain traction.”  

The spokesman recalled that there is a discussion about how deep the slump is, and stated that “the lowest point has already been hit.”

Regarding the fall in activity that led to job losses, Adorni underlined that “it is the cost paid for having honest levels which needed correction.”

“We’re paying for the party enjoyed by a few, who sold us the idea that we were all invited, but they didn’t let us join in,” he insisted.

Consulted about whether the Government had changed its view on public works after what happened to the gas supply, Adorni confirmed the suppression policy.

Nevertheless, he stressed that works related to the gas grid already scheduled will continue within the expected deadlines.

In addition, he defended the work of Energy Secretary Eduardo Rodríguez Chirillo by stating that “there was no lack of foresight at all.”

20,000 state employees laid off

The number of public employees was reduced by 19,223 people between December, 2023 and April, 2024, according to data from the INDEC national statistics bureau.

In December, there were 341,473 state employees, and by April this had dropped to 322,250.

The data confirm the adjustment of public payrolls implemented by Javier Milei’s government.

According to official figures, most employees are in the national public administration, at 215,901. Last December, there were 231,305, which shows that the main cutback was in that orbit.

In state-run companies, there were 110,168 people working as of December 2023, and by April this had dropped to 106,349, which also reflects a cutback of nearly 4,000 employees.

According to Milei’s government, the public sphere is totally oversized, which is why the policy applied is not to renew expiring contracts.

The libertarian administration’s priority is to downsize the State, which grew significantly in the last Kirchnerite governments.

They are also pushing for provinces to cut back on public employment, based on agreements with the national government.

Economy Minister Luis Caputo achieved a fiscal surplus in the first half of the year, and the goal will be to maintain it through to the end of this month.


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