Argentina: Year-on-year economic activity growth speeds up in June
Latest reading: The monthly indicator for economic activity (EMAE) increased 6.4% in year-on-year terms in June, which was above May’s 5.3% increase. Looking at the details of the release, June’s pickup was broad-based, with the agriculture, manufacturing, transport and construction sub-sectors all gaining steam.
However, on a monthly basis, economic activity dropped 0.7% in June, which was greater than May’s 0.2% fall.
Panelist insight: On the reading and outlook, Goldman Sachs’ Sergio Armella said:
“Activity has shown some volatility but has generally weakened in recent months, tracking 1.3% below its February peak through June. We note, however, that part of the June [month-on-month] contraction was likely driven by a drag from the volatile fishing sector that was down almost 75% from the previous year. We expect the economy to return to a positive growth trend, but the tightening of domestic financial conditions since mid-July may impact credit growth, consumption, and economic activity more broadly over the coming months.”