RIO DE JANEIRO, BRAZIL – Economic activity in Argentina increased by 11.4% in March compared to the same month in 2020, posting its first growth after dropping for 19 consecutive months. This brings Argentina’s GDP growth to 2.9% in the first quarter of 2021.
However, this growth is largely the result of the low base of comparison, since in March 2020 economic activity was impacted by the first severe health measures imposed by Alberto Fernández’s government in response to the Covid-19 pandemic outbreak.
The data were released on Thursday, May 20, by the National Institute of Statistics and Censuses (INDEC), also reporting that in the first quarter this year, Argentina’s economic activity accumulated a 2.9% increase.
On the other hand, and in seasonally adjusted terms, the Argentine economy fell 0.2% compared to February this year. The INDEC report reveals that, out of 16 activities included in the indicator, 8 productive sectors posted year-on-year growth in the third month of the year.
According to the data disclosed on Thursday, the sectors posting the highest growth rates were fishing (59.2%), building (44.1%) and manufacturing industry (28.9%). In contrast, the sector posting the worst year-on-year performance was hotels and restaurants (-22.3%).
Severely affected by the Covid-19 pandemic, Argentina’s GDP plummeted by 9.9% in 2020, thereby exacerbating the recession that began in 2018. Projections for 2021 point to a recovery: while the Government expects 5.5% growth, private economists consulted every month by the Argentine Central Bank project a 6.4% rebound.
Nevertheless, some analysts are still cautious about growth projections, which could be revised downwards should the Covid-19 pandemic further worsen and the government be forced to tighten the health restrictions currently in force.
Source: El Pinguino
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