In the second quarter, GDP growth was flat over the same period last year. The reading represents a notable deceleration compared to the 5.2% increase tallied in the first quarter and marks the worst reading since the third quarter of 2009. The moderation was driven by a deceleration in domestic demand, as the contribution to growth from the external sector improved compared to the previous quarter. Total consumption added 4.6% over the same quarter of the previous year, which was below the 7.3% increase recorded in Q1. Meanwhile, gross fixed investment plunged 15.0% in Q2, which contrasted the 2.8% expansion in Q1 and marks the worst reading since the last quarter of 2002. Exports of goods and services dropped 9.5% (Q1: +4.2% year-on-year), while imports plummeted an even larger 14.0% (Q1: +1.4% yoy). As a result of imports deteriorating more than exports, the external sector's net contribution to overall growth rose from plus 0.3 percentage points in Q1 to plus 0.8 percentage points in Q2. A quarter-on-quarter analysis paints an even bleaker picture than the deceleration suggested by the annual figures, as GDP dropped 0.9% over the previous quarter in seasonally adjusted terms, which contrasted the 0.6% increase registered in the first quarter.
Flat GDP growth in Q2
September 21, 2012
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Argentina GDP Chart
Note: Year-on-year changes of GDP in %.
Source: Argentina National Statistical Institute (INDEC) and FocusEconomics Consensus Forecast.
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).