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ECONOMY | 20-10-2022 17:17

Argentina’s economy grew in August despite political crisis

Economy expanded 0.4% in August compared to July; From a year ago, the economy grew 6.4%, according to government data.

Argentina’s economy expanded in August even after a political crisis within the ruling coalition sparked uncertainty and propelled inflation to historic highs.

Economic activity increased 0.4 percent in August compared to July, compared to expectations for a 0.5 percent drop from analysts in a Bloomberg survey. From a year ago, the economy grew 6.4 percent, according to government data published by the INDEC national statistics bureau on Thursday. 

Argentina named three economy ministers in a month’s time earlier this year, exacerbating doubts about the nation’s direction and catapulting inflation even higher. Sergio Massa, who currently holds the position, took over in early August but didn’t implement major policy changes until September.

After posting resilient growth in the first part of the year, Argentina faces a more challenging second half as consumer price increases are projected to hit 100 percent in coming months with Central Bank reserves at razor-thin levels. Economists polled by the monetary authority last month see contractions in gross domestic product in both the third and fourth quarter. 

The country also posted a trade surplus of US$414 million in September, compared to a US$300-million deficit the previous month, according to additional data released Thursday. 

by Patrick Gillespie, Bloomberg

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