Argentine Economy Rebounded More Than Expected in Reopening
(Bloomberg) -- 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% compared with May, above economists expectations for a 2% increase. From a year ago, the economy grew 10.8% 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.
ARGENTINA REACT: June Recovery Still Means 2Q GDP Contraction
President Alberto Fernandez 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 fueled more tension with the business community. A temporary strategy to cool inflation by slowing the peso’s daily devaluation has also succeeded.
Fernandez expects the economy to grow 7% this year and 4.5% 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.
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