Argentina: GDP acceleration steps up in Q2
September 20, 2013
In the second quarter, GDP growth rose 8.3% over the same period last year, marking a notable improvement over the 3.0% expansion recorded in Q1.
The acceleration in Q2 was driven by an expansion in domestic demand, which more than compensated for a deterioration in the external sector. Private consumption added 9.2% over the same quarter last year, which followed the 6.1% increase recorded in Q1. Meanwhile, gross fixed investment surged to a 16.2% growth rate in Q2 after a modest 1.3% expansion in Q1.
Exports of goods and services rebounded to 4.4% (Q1: -8.5% year-on-year), but imports rose 21.3% (Q1: -6.2% yoy). As a result, the external sector's net contribution to overall growth fell from minus 1.9 percentage points in Q1 to minus 2.2 percentage points in Q2.
A quarter-on-quarter analysis corroborates the positive year-on-year reading as GDP rose 2.6% over the previous quarter in seasonally-adjusted terms, up from the 2.2% increase recorded in Q1.
LatinFocus Consensus Forecast panelists see GDP expanding 3.7% in 2013, which is up 0.1 percentage points from last month's forecast. In 2014, panelists expect the economy to grow 2.5%.
Author: Carl Kelly, Economist