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ECONOMY | 30-03-2022 13:41

Economy grew 5.42% in January year-on-year, but fell from previous month

Argentina's economy grew 5.42% in January year-on-year, but fell 0.5% compared to last December, according to government data.

Argentina's economy grew 5.42 percent in January year-on-year, but fell 0.5 percent compared to last December, according to the INDEC national statistics bureau.

The data, published Tuesday and based on the bureau’s monthly estimate of economic activity, showed that hotels and restaurants were up 51.5 percent on the previous year thanks to a booming summer holiday season free of coronavirus restrictions.

Another notable rise was seen in mining and quarrying, which jumped 14 percent from the previous year. Agriculture and livestock improved 10.6 percent on January 2021, with transport and communications rising 10.1 percent.

The only sectors that recorded year-on-year declines in January were manufacturing, down 0.1 percent, and fishing, which slumped 15.3 percent.

INDEC’s monthly estimate of economic activity has now been on the rise for 11 consecutive months year-on-year according to the bureau, though the slump from the previous month is cause for concern for the government.

Overall, gross domestic product grew 10.3 percent in 2021, according to official data – the first advance in four years after a slump of 9.9 percent in 2020, during the first year of the covid-19 pandemic.

Argentina has just agreed with the International Monetary Fund to refinance US$44.5 billion of debt. In addition, it secured an extension of its agreement with the Paris Club to defer payment of some US$2 billion until June at the earliest.

The IMF projects that Argentina will grow by three percent this year, though government officials say they anticipate a rise in GDP of close to four percent.



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