Feb 19 • 12:54 UTC 🇦🇷 Argentina Clarin (ES)

The cost of the strike: which sectors lose the most money and which cannot recover it

A report by the UADE Institute of Economics estimates the economic cost of the strike in Argentina this Thursday could reach approximately $696 billion ARS or $489 million USD, with significant variations based on sector participation.

A preliminary report by the UADE Institute of Economics has calculated that the economic cost of the planned strike in Argentina could reach as high as $696.268 billion ARS or $489 million USD on average. The estimates suggest that the losses could range between $400 million to $600 million USD, depending on the level of participation. These figures represent about 0.8% of the GDP from February or about 20.3% of what would have been produced on the strike day.

The report indicates that not all sectors and regions will experience uniform losses during the strike. In fact, it is expected that approximately 60% of the losses incurred will be recovered within the following month. A particular focus of the report highlights the impact of the public transportation sector, which includes buses, trains, and subways; a lack of participation from this sector in the strike could reduce the financial impact significantly to around $180 million USD.

The economic estimations are based on historical data gathered by the Institute during past strikes in May and October of last year, suggesting that such events can greatly disrupt economic productivity. This ongoing strike could have far-reaching implications, particularly for sectors that are more reliant on daily operations and public transportation services, which may face longer-term challenges in recovery based on participation levels and public sentiment towards strikes in general.

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