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Argentine Economy Rebounded More Than Expected in Reopening

Argentine Economy Rebounded More Than Expected in Reopening

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. 

Argentine Economy Rebounded More Than Expected in Reopening

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. 

©2021 Bloomberg L.P.