Activity in June expanded 1.1% from a month earlier, well above economists’ expectatios of a 0.2% decline
Argentina’s economy unexpectedly expanded in June, before a political crisis in July sent prices soaring to a 30-year high.
Economic activity increased 6.4% year-on-year in June, hte INDEC national statistics bureau said on August 23rd.
The fugure, produced by the bureau’s estimate of activity, means that Argentina’s economy grew 6.3% in the first half of 2022, when compared to the previous year.
Compared to the previous month, however, the economy grew 1.1% in the indicator, which is, seasonally adjusted, well above economists’ expectations of a 0.2% decline.
In June, economic activity was driven by the wholesale trade, reatil and repairs (+8.4%, compared with the same month in 2021, manufacturing (+6.2%) and transport and communications (+10.8%) sectors, which, together, contributed to the increase in the total index, INDEC confirmed.
The fastest-growing sectors were hotels and restaurants (+39.% compared with June 2021) and minig and quarrying (+14.2%).
While the economy was resilient in the first half of the year, analysts in the Central Bank’s monthly survey now forecast that Argentia will enter a brief recession with contactions in the third and fourth quarters. Annual growth will be around 3.4%, they said.
According to the most recent forecast by the International Monetary Fund, Argentina’s gross domestic product will increase by 4% this year.