Argentina economy picks up steam in first quarter
If there was still any doubt, Argentina’s economy is definitely growing.
The Indec national statistics agency announced that Argentina’s economy grew by 0.3 percent in the first quarter compared to the same period last year. Meanwhile, gross domestic product grew by 1.1 per cent from to the previous quarter.
The good news was welcome, after the Merval stock index dived around 5 per cent today following MSCI’s refusal to promote Argentina to an emerging market, while the peso plumbed new lows.
The Indec’s numbers, which are widely considered to be credible after the government of Mauricio Macri revamped the statistics agency last year, were better than most analysts had been expecting.
Growth first returned in the third quarter of 2016, when the economy registered quarter-on quarter growth of 0.1 per cent, followed by 0.7 per cent growth in the last quarter.
Those two consecutive quarters of growth signalled an end to Argentina’s recession.
But the first quarter of 2017 was the first to show year-on-year growth, fuelling hopes of an economic revival ahead of mid-term elections in October. Even so, the growth remains patchy, with strong growth in some sectors like agriculture and construction, while consumption remains weak.