Investment in Argentina
Argentina - Investment
Pace of economic contraction softens in Q3 on easing restrictions, but remains sizable
GDP contracted 10.2% year-on-year in the third quarter, moderating from the 19.0% dive recorded in the second quarter, amid the lifting of some Covid-19 restrictions.
Nevertheless, the pace of contraction was still considerable, reflecting the ongoing impact of the Covid-19 pandemic on both domestic and external activity. Private consumption plunged at a milder yet still pronounced rate of 14.7% year-on-year in Q3 (Q2: -22.3% yoy), amid downbeat consumer sentiment and an ailing labor market. Meanwhile, the contraction in public spending softened from 8.8% in Q2 to 6.5% in Q3, while fixed investment fell 10.3% in Q3 (Q2: -38.3% yoy), due to uncertainty surrounding both the evolution of the pandemic and the future course of government policies.
On the external front, exports of goods and services dived 17.0% in Q3, following Q3’s 13.6% slump, amid still-muted global demand and disrupted supply chains. Meanwhile, imports of goods and services declined at a milder yet still significant pace of 22.0% in Q3 (Q2: -30.5% yoy) due to a less pronounced contraction in domestic demand.
On a quarterly basis, economic activity rebounded 12.8% in Q3, contrasting the previous quarter's 16.0% plunge.
Looking ahead, the economy should recover somewhat in 2021 from this year’s pandemic-induced downturn, thanks to the reopening of the global economy. However, capital controls, runaway inflation, persisting macroeconomic imbalances and market-unfriendly policies will restrain growth, while uncertainty regarding the availability of vaccines poses a downside risk.
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.
Argentina - Investment Data
|Investment (annual variation in %)||3.5||-5.8||12.2||-5.7||-15.9|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||6.69||0.15 %||Dec 17|
|Exchange Rate||59.88||0.45 %||Dec 30|
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February 25, 2021
On an annual basis, economic activity fell at a slower pace of 2.2% in December (November: -3.7% yoy).
February 23, 2021
Merchandise exports expanded 7.3% in annual terms in January, strongly contrasting December’s 34.1% slump, which had the worst reading since September 2009.
February 23, 2021
Industrial output grew 4.9% year-on-year in December, following November’s 4.3% drop and marking the strongest increase since February 2018.
February 12, 2021
Consumer prices surged 4.00% over the previous month in January, matching the jump logged in December and marking the joint-fastest increase in over one year.
February 5, 2021
Industrial output grew 4.9% year-on-year in December, following November’s 4.3% drop and marking marked the strongest increase since February 2018.