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National State investment in the provinces fell by 83.7% in real terms during the first half of the year, the lowest amount since at least 2017. In particular, the construction sector, that is, Public Works, contracted by 86.2% compared to the first half of last year. Only Tierra del Fuego and Jujuy showed improvements compared to 2023, while La Rioja, which, given the drop in income from transfers, has already begun to issue its own quasi-currency, showed the sharpest drop among the provinces.
The data comes from Politikón Chaco. Specifically, they explained that the direct real investment of the National State in the provinces and CABA during the first half of 2024 totaled $131,496 million in its paid stage. Adjusted for inflation, this translates into a year-on-year decrease of 83.7%.
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Alberto Weretilneck, Guillermo Francos and Lisandro Catalán.
Francos and Weretilneck signed the transfer of public works to Río Negro
Dollar escalation: industrialists express concern about the speculative increase in prices
Dollar escalation: industrialists express concern about the speculative increase in prices
"If we analyze the evolution of Real Direct Investment for the first semesters of 2017 to 2024, it can be seen that the amount executed in the current year is the lowest in the entire series," the consultancy highlighted.
Broken down, the data shows that the other section, which includes machinery and equipment, safety equipment, cattle and others, totaled $48,399 million when in 2023 it was $51,823 million, thus registering a negative variation of 75.7% in real terms.
However, a large part of this fall is the result of the cessation of Public Works carried out by the Javier Milei administration. Specifically, construction, which represents 63% of direct real investment, shows a real year-on-year fall of 86.2%.
Construction, which represents 63% of real direct investment
Construction, which represents 63% of real direct investment
Public works: Jujuy and Tierra del Fuego, the only two provinces with an improvement
In the case of construction, which in most provinces represents 90% of the States direct investment, Jujuy and Tierra del Fuego were the only two provinces with real increases (52% and 43.2% respectively) in the year-on-year comparison, "although slowing down month by month," Politikón noted.
Rio Negro was the province with the slightest decline in the period, with a negative variation of 26.9%. Chubut and La Rioja, meanwhile, showed the most significant declines: 99.3% and 99.4%, respectively.
In terms of participation of the total paid for construction, it was added: "It is observed that Buenos Aires, CABA, Entre Ríos, Río Negro and Chaco concentrate 57.4% of the national total, although only the first two represent 38.5%. At the other extreme, La Rioja and Chubut show the lowest levels of participation with 0.2% in each case." |
