Argentina GDP Q2 2021


Argentina: Economy grows strongly in Q2 on low base effect

September 24, 2021

GDP growth gathered significant momentum in the second quarter, accelerating to 17.9% year-on-year from 2.9% in the first quarter, benefiting from a favorable base effect.

The upturn mainly reflected a marked improvement in domestic demand. Private consumption rebounded, growing 21.9% year-on-year in Q2 following a 1.7% contraction in Q1. Government consumption also bounced back, growing 8.2% in Q2 (Q1: -0.1% yoy). Fixed investment growth, meanwhile, sped up to 76.6% in Q2 from 38.7% in the prior quarter, driven by the construction sector.

On the external front, exports of goods and services bounced back, growing 6.3% year-on-year in the second quarter (Q1: -9.9% yoy). Meanwhile, growth in imports of goods and services sped up to 36.6% in Q2 (Q1: +4.9% yoy), marking the best reading since Q3 2010.

On a seasonally-adjusted quarter-on-quarter basis, however, economic activity declined 1.4% in Q2, contrasting the previous period's 2.8% expansion, amid stricter Covid-19 restrictions.

LatinFocus Consensus panelists see the economy growing 4.7% in 2021, which is up 0.2 percentage points from last month’s estimate, and 2.6% in 2022, which is up 0.1 percentage points from last month’s estimate.

Author: Massimo Bassetti, Senior Economist

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Argentina GDP Chart

Argentina GDP Q1  2021 0

Note: Year-on-year changes of GDP in%.
Source: Argentina National Statistical Institute (INDEC) and LatinFocus Consensus Forecast.

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