Argentina’s Economy Posts Strong Third Quarter Rebound
Argentina’s Economy Posts Strong Third Quarter Rebound
(Bloomberg) -- Argentina’s economy rebounded in the third quarter as a vaccination campaign picked up momentum and the government spurred activity by shedding most of its Covid-19 lockdown restrictions.
Gross domestic product expanded 11.9% in the quarter from a year ago, just below analysts’ estimate for 12% growth. The economy grew 4.1% compared to the previous three-month period, according to government data published Thursday. The recovery followed a second quarter contraction.
Exports rose 7.3% from the previous three-month period while public spending increased 3.4%, driving activity during the quarter, according to the statistics agency INDEC. President Alberto Fernandez’s administration anticipates the economy will finish this year with growth close to 10%.
However, Argentina’s economy is facing growing headwinds. Uncertainty surrounding the government’s negotiations with the International Monetary Fund for a new debt payment program will cloud the outlook in early 2022.
Recession and political volatility in Brazil, the country’s biggest trading partner, as well as droughts forecasts that could hinder commodity exports, also pose risks to Argentina’s recovery from the pandemic.
Economists surveyed Argentina’s central bank forecast the economy growing 9.7% this year and 2.5% in 2022.
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