Argentina’s economy caps strong second half with December rebound

Argentina’s economy capped a strong second half of growth as it emerged from a long recession last year ahead of an expected new deal in the coming weeks with the International Monetary Fund.

Economic activity in December rose 0.9 percent from the prior month, in line with economists’ expectations. From a year ago, the economy expanded 9.8 percent in the final month of the year, according to government data published Wednesday. The annual figure was below expectations for an 11 percent gain. 

In December, tourism and transportation posted the largest annual gains. The government estimates that the economy grew about 10 percent for all of 2021, following three years of recession.  

The economy grew on a monthly basis in five out of the last six months of 2021. 

Economic growth will be a focal point in Argentina’s pending programme with the IMF to reschedule payments on about US$40 billion of outstanding debt. While the government forecasts four percent growth for 2022, IMF officials project a weaker expansion, of 2.5 percent.