In the third quarter, GDP rose 8.6% over the same period the year before. The reading represented a deceleration compared to the 11.8% increase recorded in the previous quarter but was virtually in line with market expectations of an 8.4% rise. The deceleration over the previous quarter was the result of a moderation in the domestic sector, while the external sector improved slightly. Total consumption added 8.8% over the same quarter of the previous year, inching down from the 8.9% increase recorded in the second quarter of 2010. Meanwhile, gross fixed investment increased 26.6%, up from the 18.9% rise recorded in the second quarter. The expansion marked the third positive result after five quarters of contraction, and represented the highest annual increase since the last quarter of 2005. That said, a negative shift in inventories contributed to the slower in the domestic sector. Exports of goods and services jumped from an 18.2% increase to a 27.8% rise, while imports added 37.4%, up from the 35.6% rise recorded in the previous quarter. As exports improved more than imports, the net contribution from the external sector to overall growth improved from minus 1.4 percentage points in the second quarter to minus 0.9 percentage points in the third. At the sector level, the deterioration reflected slower growth in the agricultural sector. The second quarter benefited from a bumper corn and soybean harvest, contrasting the dismal result experienced in 2009 due to the drought, and helped the agricultural sector jump an annual 63.5%. As the impact of this base effect diminished in the third quarter, growth in the sector slowed to a much more moderate but still robust 6.4% rise. Meanwhile, industrial production stepped up from an 8.3% expansion in the second quarter to a 9.7% rise in the third. The services sector increased 7.4% (Q2: +7.8% yoy). A quarter-on-quarter analysis corroborates the deceleration seen in annual figures, as GDP expanded 0.37% over the previous quarter in seasonally adjusted terms, after having increased 2.68% in the second quarter. The Central Bank believes that the economy will grow between 8.9% and 9.5% in the full year 2010. Consensus Forecast panellists share/don't share this assessment and see the economy growing 6.9% in 2010. For this year, panellists see the economy growing 4.0%, which is unchanged from last month's forecast, while in 2012, they expect the economy to grow -.-%, which is up/down from last month's forecast.
Economic growth moderates but remains strong
December 17, 2010
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Argentina Economic News
October 4, 2016
At its weekly meeting on 4 October, the Central Bank of the Argentine Republic (BCRA) decided to keep the 35-day Lebac interest rate unchanged at 26.75%, matching the previous week’s decision.
September 30, 2016
In August, industrial production contracted 5.7% over the same month of the previous year, according to the latest data released by the National Statistical Institute (INDEC).
September 28, 2016
In July, the monthly indicator for economic activity (EMAE, Estimador Mensual de Actividad Económica) declined 5.9% year-on-year, which was below the 4.7% fall in June and represented the steepest contraction since July 2009.
September 28, 2016
In August, exports expanded 12.0% over the same month last year, which contrasted the 10.8% decrease seen in July and marked the highest reading since May 2013.
September 26, 2016
In August, consumer prices in the greater Buenos Aires capital area increased 0.2% over the previous month, according to recent data published by the National Statistics Institute (INDEC).