Argentina: Drop in economic activity steepens in July
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. The print undershot the 4.0% drop that market analysts had expected.
Sequential data corroborate that the economy remains in a serious downturn. A month-on-month comparison showed that economic activity declined 0.4% in seasonally-adjusted terms in July, which followed June’s 0.2% decline.
On average, in the 12 months up to July, economic activity decreased 0.2%, which was below June’s 0.6% increase and marked the weakest growth rate in a year.
The Statistical Institute relaunched the economic activity indicator series in August following an eight-month hiatus as statistical data had come under heavy criticism under the previous administration.
Author: Dirina Mançellari, Senior Economist