Argentina Economic Outlook
July 12, 2016The transition from a highly-regulated economy to a market-oriented economy is proving difficult for Argentina. Recent GDP data released by the statistical office show that the economy entered recession after recording the third consecutive quarter-on-quarter contraction in the first quarter of this year. GDP expanded a weak 0.5% on an annual basis as a deterioration in private consumption due to high inflation and the removal of utility subsidies took a toll on growth. Moreover, government spending decelerated notably and fixed investment swung to a contraction. Meanwhile, President Mauricio Macri’s push for reforms continues. In a bid to stimulate domestic demand and halt growing opposition to his austerity reforms, Macri has recently announced limits on utility price increases and an increase in pension benefits. Moreover, despite his party’s minority, last month both chambers of Parliament approved a tax amnesty that aims at repatriating capital stashed abroad in order to increase government revenues.
Argentina Economy Data
5 years of Argentina economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.69||0.15 %||Dec 17|
|Exchange Rate||14.95||-0.02 %||Jul 26|
|Stock Market||15,758||0.29 %||Jul 26|
Argentina Economic Growth
July 12, 2016Low commodity prices, the prolonged recession in Brazil and a slow adjustment to the new government’s policies are factors clouding this year’s growth outlook. However, following renewed access to international capital markets, the economy is expected to largely benefit from fresh capital inflows. Analysts project Argentina’s GDP to contract 1.0% in 2016, which is unchanged from last month’s Consensus. For 2017, analysts project the economy to rebound and expand 2.9%.
Argentina Economic News
July 6, 2016
In June, the Universidad Torcuato di Tella (UTDT) consumer confidence index was stable at the previous month’s 42.7, thus remaining at the lowest level since September 2014.
June 30, 2016
In May, industrial production contracted 4.3% over the same month of the previous year according to the latest data released by the National Statistical Institute (INDEC).
June 29, 2016
Following a period of data scarcity after President Mauricio Macri’s administration declared a “national statistical emergency” in December, the National Statistical Institute (INDEC) has recently started publishing official GDP data with information on both the supply and demand sides of the economy.
June 23, 2016
In May, exports expanded 2.7% over the same month last year, which contrasted the 8.4% decrease observed in the previous month and marked a three-month high.
June 13, 2016
In May, the Universidad Torcuato di Tella (UTDT) consumer confidence index continued on the downward trend that started in November of last year.