Private consumption - which represents approximately 70% of GDP - began to move into negative territory. This negative trend is replicated at the regional level, in practically all provinces.
It could only moderate starting in the second half of the year, as inflation slows down and some sectors of activity show the first signs of reactivation. The real mass of income is the main determinant of the reactivation, the pace of inflation will be key, the consulting firm MAP Economic&Business Advisors says. The recovery of consumption levels, on the other hand, will not be homogeneous between the different sectors, the firm says. It is reasonable to expect that consumption in those provinces with high employment rates will remain depressed in those with low rates of public spending, it adds. The report is published by MAP Economic &Business Advisers, a consulting firm based in Buenos Aires, Argentina, on behalf of the Argentinian Chamber of Commerce and Industry (ACCI). For more information, visit www.mapeconomic&business.com.