Argentina's economy fell in the first quarter of the year by 5.4% year-on-year. The INDEC noted that "there was a negative impact on the manufacturing industry, wholesale, retail and repairs as well as construction". Regarding the demand, reductions were observed in all the components: Private consumption (-6.6% year-on-year), Public consumption (-0.7%), Gross fixed capital formation (-18.3%) and Exports (-4.7). Covering the toughest part of the quarantine, analysts estimate that the collapse in the second quarter will be more than 10%.
Unemployment rose to 10.4% during the first quarter of the year. According to the INDEC's measurement, the increase was 0.3% compared to the same period in 2019 and 1.5% compared to the last three months of 2019. The people affected by unemployment in the 31 districts surveyed reached 1,394,000, while the underemployed are 1,569,000.
To support the operations of some 30,000 small and medium-sized Argentine companies hit by the coronavirus pandemic, the Inter-American Development Bank (IDB) approved a $500 million loan for Argentina.
After the close of the markets, where Argentine ADRs bounced up to 5.2%, the leading index provider MSCI decided to keep Argentina in the emerging market category, although it warned that it could remove that status if controls are tightened, and market accessibility deteriorates. Currently, only three shares of Argentine firms are part of the MSCI index: Telecom Argentina, YPF and Globant, with the participation of 0.12%.
According to data provided by the Argentine Dairy Chain Observatory (OCLA), in the first four months of the year, per capita consumption of dairy products reached 56.9 litres/inhabitant of milk, increasing to 2,582 million litres of milk, 1.8% more than the previous year. In the case of production, the result was almost 3,223 million litres of milk in the January-April period, an interannual increase of 8.5%. Exports there reached 777 million litres, with a rise of 22.7% as compared with the period January-April 2019.