Argentina Economic Activity Grows 5.6% Year-on-Year in March

Argentina's labor market, characterized by a stark division between formal and informal sectors, has experienced significant disruption and unequal earnings trajectories during the COVID-19 pandemic and subsequent recovery period, with informal workers more likely to face declining incomes while formal workers with higher qualifications tend to see stability or growth. Recent economic data show Argentina's economy growing by 5.6% year-on-year in March, marking five consecutive months of growth, though this increase fell short of analysts' expectations and was accompanied by a month-on-month decline in activity. Key sectors such as finance and construction have contributed notably to this growth, despite the overall slower pace compared to previous months. These economic trends reflect the challenges and gradual recovery under President Javier Milei's austerity policies, as the country prepares for a new program with the International Monetary Fund. The combined insights indicate ongoing structural inequalities in the labor market alongside cautious signs of economic resurgence. This nuanced picture underscores the complexity of Argentina's post-pandemic economic and social recovery.