Argentina: GDP picks up in Q1
June 19, 2013
In the first quarter, GDP growth rose 3.0% over the same period last year, marking an improvement over the 2.1% expansion recorded in Q4 2012.
The faster expansion in Q1 was driven by an improvement in domestic demand, which more than compensated for a deterioration in the external sector. Total consumption added 6.1% over the same quarter last year, which was above the 4.6% increase recorded in Q4. Meanwhile, gross fixed investment rebounded from a 1.9% drop in Q4 to a 1.3% expansion in Q1.
Exports of goods and services dropped 8.5% (Q4: -12.5% year-on-year), while imports rose 6.2% (Q4: -2.1% yoy). As a result, the external sector's net contribution to overall growth fell from minus 1.2 percentage points in Q4 to minus 1.9 percentage points in Q1.
A quarter-on-quarter analysis corroborates the positive year-on-year reading, as GDP rose 1.5% over the previous quarter in seasonally adjusted terms, mirroring the result recorded in Q4.
LatinFocus Consensus Forecast panellists see GDP expanding 3.3% in 2013, which is down 0.1 percentage points from last month's forecast. In 2014, panellists expect the economy to grow 2.9%.
Author: Armando Ciccarelli, Head of Data Solutions