Argentina: Economic activity gains steam in June
August 24, 2017
In June, the monthly indicator for economic activity (EMAE, Estimador Mensual de Actividad Económica) rose 4.0% year-on-year, the fastest rate in nearly two years and above May’s already-impressive 3.4% expansion. June’s reading was the fourth consecutive month of year-on-year gains in the index, offering a boost to President Mauricio Macri’s market-friendly government ahead of October’s mid-term legislative elections.
The construction and manufacturing sectors both notably contributed to June’s rise. In contrast, the increase was otherwise undermined by the mining and quarrying sector, which has consistently underperformed relative to most other sectors in the Argentine economy since 2016.
A seasonally-adjusted month-on-month comparison showed that economic activity expanded 0.3% in June, following May’s 0.7% increase. On average, economic activity decreased 0.7% in the 12 months up to June, which is an improvement from the 1.4% drop in the 12 months up to May.
Author: Edward Gardner, Economist