Argentina: Economy accelerates in Q3
December 16, 2011
In the third quarter of 2011, GDP rose 9.3% over the same period the year before. The reading represents an acceleration compared to the 9.1% increase recorded in the previous quarter and also beat market analysts' expectations of an 8.2% expansion. The acceleration reflects the strength of the domestic sector, which remained the main contributor to overall growth despite slowing slightly. Total consumption added 11.1% over the same quarter of the previous year, virtually in line with the 11.5% increase recorded in Q2. Meanwhile, gross fixed investment increased 16.5% in Q3, down from the 23.8% rise in Q2. Meanwhile, exports of goods and services grew 3.4% (Q2: +0.5%), while imports added 17.7% (Q2: +24.9%). Due to the improvement in exports, the external sector's net contribution to overall growth improved from minus 3.1 percentage points in Q2 to minus 2.1 percentage points in Q3. At the sector level, the acceleration was driven by the services sector, which inched up from a 9.8% expansion in Q2 to a 9.9% rise in the third quarter. In addition, the agricultural sector improved from a 5.4% contraction in the second quarter to a 3.3% drop in the third. Finally, industry grew 9.0% (Q2 2011: +11.3%). A quarter-on-quarter analysis, however, does not corroborate the acceleration seen in annual figures, as GDP expanded 1.11% over the previous quarter in seasonally adjusted terms, down from the 2.42% increase registered in the second quarter.
Author: Armando Ciccarelli, Head of Data Solutions