Argentina: Economy in Q2 records fastest expansion in nearly two years
September 18, 2015
In the second quarter, GDP expanded 2.3% over the same quarter of the previous year, according to data released by the National Statistics Institute (INDEC) on 18 September. Q2’s expansion marked the fastest increase since Q3 2013. The print came in above the 2.1% increase that was recorded in the previous quarter.
The expansion in Q2 recorded by INDEC was mainly the result of an improvement in domestic demand, while external demand deteriorated over the previous quarter. Private consumption expanded 0.8% over the same quarter of the previous year, which matched Q1’s figure. Moreover, growth in government consumption accelerated from 6.2% in Q1 to 10.3% in Q2. In addition, fixed investment grew 4.6% in Q2, which was an improvement over the 1.2% increase seen in the previous quarter.
On the external side of the economy, exports of goods and services in Q2 contracted 0.2% in annual terms, which was a less-pronounced contraction than the 0.9% fall tallied in Q1. Imports rebounded from a 5.6% contraction in the first quarter to a 2.8% expansion in the second quarter. As a result, the contribution from the external sector to overall growth dropped from plus 1.0 percentage points in Q1 to minus 0.6 percentage points in Q2.
According to sequential data, the economy grew a weak 0.5% in the second quarter, which was slightly down from the 0.7% increase seen in the previous quarter.
Author: Dirina Mançellari, Senior Economist