Argentina: Flat GDP growth in Q2
September 21, 2012
In the second quarter, GDP growth was flat over the same period last year. The reading represents a notable deceleration compared to the 5.2% increase tallied in the first quarter and marks the worst reading since the third quarter of 2009. The moderation was driven by a deceleration in domestic demand, as the contribution to growth from the external sector improved compared to the previous quarter. Total consumption added 4.6% over the same quarter of the previous year, which was below the 7.3% increase recorded in Q1. Meanwhile, gross fixed investment plunged 15.0% in Q2, which contrasted the 2.8% expansion in Q1 and marks the worst reading since the last quarter of 2002. Exports of goods and services dropped 9.5% (Q1: +4.2% year-on-year), while imports plummeted an even larger 14.0% (Q1: +1.4% yoy). As a result of imports deteriorating more than exports, the external sector's net contribution to overall growth rose from plus 0.3 percentage points in Q1 to plus 0.8 percentage points in Q2. A quarter-on-quarter analysis paints an even bleaker picture than the deceleration suggested by the annual figures, as GDP dropped 0.9% over the previous quarter in seasonally adjusted terms, which contrasted the 0.6% increase registered in the first quarter.
Author: Armando Ciccarelli, Head of Data Solutions