Economy in Argentina Contracts 1.8 Percent

The decline was smaller than the World Bank's previous forecast of a 3.5-percent contraction, as President Javier Milei's administration implemented strict public spending cuts and monetary tightening.

Despite the overall decline, the economy showed signs of a strong recovery in December, growing 5.5 percent year-over-year, driven by an 18-percent increase in the financial intermediation sector, followed by increases in net taxes (13.1 percent), trade (7.4 percent), mining and quarrying (7.3 percent), and manufacturing (6.7 percent), INDEC said.

Conversely, the fishing industry saw a steep 25-percent decline, while construction fell 7.2 percent, affected by the government's decision to halt public works, INDEC added.

4155/v