Argentina: Economic activity declines in August
October 27, 2014
Economic activity dropped 1.2% in August compared to the same month last year. August’s result was down from July’s 0.1% annual contraction (previously reported: 0.0% year-on-year). The reading is based on a new calculation methodology—adopted by the national statistical institute in March in response to a request from the International Monetary Fund (IMF)—that shifts the base year of calculation from 1993 to 2004. Economic activity contracted 0.9% over the previous month in seasonally-adjusted terms. August’s reading contrasted the 0.1% expansion tallied in July and marked the first monthly contraction since March of this year.
The new figures bring the official estimates closer to the independent estimates that local private analysts produce, which have traditionally pointed to lower growth compared to official sources. However, a discrepancy between official and non-official figures still exists.