A report by the United Nations Industrial Development Organization (UNIDO in Latin America and the Caribbean) indicates that Argentina, with a 9.4% decline, was the country that suffered the largest industrial decline in the world in 2024, the first year of Javier Milei’s administration. Furthermore, due to greater trade openness announced by the government, the organization foresees a worrying 2025 for the sector.

The second country with the largest decline was Togo, followed by Ireland (the country Milei mentioned as an example for Argentina), Hungary, Germany, and Estonia. At the other end of the spectrum, Rwanda had the largest growth, with almost 15%.

The information was published this Tuesday on the Twitter account of Misión Productiva, a network of professionals that promotes debate in Argentina on development, production, innovation, and quality employment and seeks to build a space for public debate where productive development increasingly occupies a place in the country’s economic debate.

“Behind this decline is primarily the sharp drop in domestic demand, in a context of falling real wages, especially during the first half of the year, and the contraction of traditionally driving activities, such as construction,” they noted on social media, adding to the causes of this decline “the dismantling of industrial policies” since “financing lines for SMEs, sector promotion programs, and technological development tools were eliminated.”

Looking ahead to 2025, they analyze that “it looks worrying for industry” since “the government is pushing for greater trade openness in a context marked by a strong appreciation of the exchange rate, which will weaken the manufacturing industry. History shows that this combination is very damaging to the local industry.”