Argentina’s economy expanded more than expected in June as the government relaxed lockdown measures and ended an export dispute with beef producers
Economic activity rose 2.5 percent compared with May, above economists expectations for a two-percent increase. From a year ago, the economy grew 10.8 percent in June, according to government data published Thursday. The growth caps a rocky quarter for Argentina, where analysts anticipate the economy contracted in the second quarter. Activity declined in April and May.
President Alberto Fernández relaxed quarantine restrictions in June following a brief, strict lockdown in May. His government in June also lifted a beef export ban, a measure that had fuelled more tension with the business community. A temporary strategy to cool inflation by slowing the peso’s daily devaluation has also succeeded.
Fernández expects the economy to grow seven percent this year and 4.5 percent in 2022. He’ll roll out a more detailed vision of next year’s economic forecast in September with the annual budget proposal sent to Congress.
by Patrick Gillespie, Bloomberg