Economic activity grew 0.6% in July year-on-year, says INDEC

Economic activity in Argentina grew 0.6 percent in July year-on-year thanks to a sharp boost in agriculture, the INDEC national statistics bureau revealed Thursday.

The data, based on the bureau's Monthly Economic Activity Estimator (EMAE), means economic activity has contracted by 2.1 percent since the turn of the year.

The positive figure was pushed, for the most part, by a 20.1-percent rise in agricultural production, compared to July 2018. That's down to an improved harvest this calendar year.

However, there were negative aspects in July's figures – manufacturing and construction continued to slide, with losses of 2 percent and 2.2 percent respectively.

Most economists expect negative figures to be posted for August, as a result of the 20-percent devaluation of the peso against the dollar and escalating inflation, added to the recession which has been dragging on since last year.

Argentina's economy is expected to close out the year with a 2.5 percent contraction in GDP for 2019, with inflation hitting 55 percent, according to the most recent Central Bank survey of economists.

– TIMES/AFP