Economy grew 9.1% year-on-year in February, says INDEC

Argentina's economy rebounded in February and grew at its fastest pace in several months, despite a contraction the previous month.

According to official data published by the INDEC national statistics bureau on Thursday, the economy grew 9.1 percent year-on-year in February and by seven percent in the first two months of 2022.

Economic activity was up 1.8 percent from the previous month, January.

Led by tourism, the increase came in one of Argentina’s busiest months for the summer holidays, and compares with February a year earlier, when tourism was limited and Covid vaccines were in their early stages of implementation.

Transport, mining and retail trade also experienced double-digit growth rates, with all but one sector expanding.

Argentina’s gross domestic product (GDP) has been rising for 12 consecutive months and was up 10.3 percent in 2021 after a 9.9 percent slump the preceding year amid the worst of the coronavirus pandemic.

Nevertheless, the growth comes with inflation accelerating sharply. Prices rose 6.7 percent in March, according to INDEC.

The International Monetary Fund (IMF) forecasts that Argentina’s economy will grow by four percent in 2022. However, economists surveyed by the Central Bank estimate predict 3.2 percent 3.2 percent.

It would be Argentina's second consecutive year of economic growth in a decade and comes after a three-year recession.

The government recently reached an agreement with the IMF to refinance a debt of almost US$45 billion. Quarterly reviews will begin in May.