MercoPress. South Atlantic News Agency

Argentina's annual economic activity grew 4.7% in September, says Indec

The government is counting with a good harvest of grains and oilseeds

Argentina's economic activity grew 4.7% in September compared with the same month last year, according to the government's much questioned stats office, INDEC. Market expectations were in the range of 3.9%.

 But Indec also indicated that September economic activity was flat compared to August, which could be indicating a cooling of the Argentine economy despite the strong annual figure.

The government of President Cristina Fernandez is counting with strong summer crops and has estimated GDP growth at 5.1% this year, after a dismal 1.9% last year and 8.9% in 2011.

Accumulated growth through September was up 5.4% from the same period of 2012, according to INDEC. If growth surpasses 3.22% in 2013, the government will be required to dip into its diminishing foreign currency reserves and pay up to 3 billion dollars in GDP-linked bond warrants in 2014.

Last year's growth was restricted by weak global demand, a drought-hit grain harvest, high inflation and the negative impact of currency controls on investment in Argentina. In September of 2012, Argentina's economy contracted 0.7% on an annual basis

Indec last Friday showed Argentina's inflation rate edged up to 0.9% in October compared with 0.8% in September. The country's inflation figures, and to a lesser extent its growth data, are widely disputed and private economists estimated that consumer prices rose 2.1% last month.

The International Monetary Fund censured Argentina in February for failing to improve the accuracy of its economic data and on Wednesday said it would meet on Dec. 9 to review a report on the topic.