Argentine economic activity expands at steady pace, but signs of cooling

Friday, November 18th 2011 - 06:11 UTC

Full article 27 comments

The financial sector expanded 26% during October

Argentine economic activity grew at a steady pace in October but there are signs that growth will cool in the coming months, local consultants Orlando J. Ferreres & Asociados, OJF, said Thursday.

OJF' October economic-activity index was up 5.9% from a year earlier, slightly higher than the average 5.5% growth seen over the past six months. Growth between January and October was up 6% on the year.

In October, the financial sector saw the strongest expansion, rising 26% on the month, followed by construction, 6% and retailing, 6%, OJF said. Mining, agriculture and livestock on the other hand contracted 3.5% and 0.4%.

Despite the strong expansion, the pace of growth is seen slowing. A drop in Brazilian manufacturing and a rise in local interest rates are expected to drag on growth prospects, OJF said. Brazil is Argentina's top trade partner.

However taking into account the current international and domestic contexts, a greater declaration in growth could have been expected” said the report.

The Central Bank of Argentina has forecast a 9% expansion in the GDP this year due to hefty fiscal and monetary stimulus, a consumer-spending spree, and strong demand for exports such as cars and grains.

However, the central bank and the government expect activity to cool next year, with the Economy Ministry forecasting 5.1% growth in its 2012 budget bill.

Categories: Economy, Argentina.

Tags: Argentina, Central Bank of Argentina, economy, Orlando J Ferreres & Asociados.

Top Comments

Disclaimer & comment rules

O gara
Where are all Cristinas detractors now even agencies who are certainly anti K ptedict 2012 of FIVE% while NA and Europe collapse.Where is the imminent Argentina collapse?Boys join Elaine with that teddy its comforting
Nov 18th, 2011 - 06:48 am 0
Yuleno
No o'gara,these other guys will,for no known reason or evidence,claim that these figures are false and that they know the truth.and then they will claim there is a slowdown and that will be true the same figures say so,and then Elaine will say she doesn't wish Argentina and it's people any harm.oh sorry o'gara I might have said it for them.sorry.
Nov 18th, 2011 - 09:44 am 0
ElaineB
LOL Thank you, Yuleno, for understanding that I really do not dislike Argenina. I shall be back there very soon having a great time with my friends. : )
Nov 18th, 2011 - 09:55 am 0

Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!