Argentina: Economic growth slows in Q4
March 26, 2012
In the fourth quarter, GDP rose 7.3% over the same period the year before. The reading represents a deceleration compared to the 9.3% increase recorded in the previous quarter came in virtually in line with last month's LatinFocus Consensus Forecast of a 7.2% expansion. Domestic demand remained the main contributor to overall growth despite a sharp deceleration. Total consumption added 8.8% over the same quarter of the previous year, which was below the 11.1% increase recorded in Q3. Meanwhile, gross fixed investment increased 8.0% in Q4, which was less than half the 16.5% rise recorded in Q3. Meanwhile, exports of goods and services grew 7.1% (Q3: +3.4% year-on-year), while imports added 9.8% (Q3: +17.7% yoy). As a result, the external sector's net contribution to overall growth improved from minus 2.1 percentage points in Q3 to minus 0.6 percentage points in Q4. A quarter-on-quarter analysis corroborate the moderation seen in annual figures, as GDP expanded 0.79% over the previous quarter in seasonally adjusted terms, down from the 0.92% increase registered in the third quarter. In the full year 2011, the economy expanded a robust 8.9%, which was nonetheless down from the 9.2% increase recorded in 2010.
Author: Armando Ciccarelli, Head of Data Solutions