Argentine economy grows close to 10% annually in first half year – Consultant

RIO DE JANEIRO, BRAZIL – Argentina’s economy rebounded by 9.7% in the first half of the year, compared to the same period in 2020, according to Orlando Ferreres consulting firm’s General Activity Index (IGA). The data shows that activity rebounded in June after the decline registered in May as a result of stricter health restrictions.

The IGA showed that in the sixth month of the year the economy grew 2.4% with respect to the preceding month. Industry and construction, two of the most relevant sectors in the Argentine economic structure and which had been leading the reactivation during the first months of the year, improved by 3% and 2.8%, respectively.

Within industry, Ferreres pointed out in particular the performance of the automotive, basic metals and plastics production.

Compared to June 2020, economic activity rose 12.3%. The main annual increase was recorded by mining and quarries (+32.1%), mainly due to the Vaca Muerta field’s record output. This was followed by recovery in retail (+24.5%) and construction (+21.1%).

Thus, in the second quarter the economy remained virtually stable compared to the first, but the accumulated first 6 months of 2021 showed a significant improvement compared to the same period in 2020. However, the low comparison base is worth noting because the April-June period last year was the most critical in economic terms since the start of the Covid-19 pandemic.

The three sectors that grew above average in the first half of the year were construction (+28.6%), retail (+18.5%) and industry (+16.4%). At the other end, the only two that posted a downturn compared to 2020 were public administration and defense (-0.7%) and agribusiness (-8.3%).

“For the remainder of the year we expect better activity development than we had in the first half, which moved from higher to lower with a rebound in the sixth month. An increase in demand due to the electoral effect, together with higher investment in public works and an epidemiological situation that seems to be starting to show fewer infections and deaths suggests a second half of the year with recovery in activity, although the risks in the projection are high and stem from the macroeconomic, political and health situation,” the consulting firm said in its conclusion.

Source: Ambito