MercoPress. South Atlantic News Agency

Economic activity in Argentina picking up, according to Indec

The increase in May was boosted by agro exports, the construction sector, consumption and extractive industries, according to a private sector report.

Economic activity in Argentina has increased 2.2% in May, compared to the same month of 2014, according to the country's stats office, Indec. Compared to April this year, economic activity has grown 0.8%, the Monthly Economic Activity Index revealed.

 If this level of monthly growth keeps steady, the Argentine GDP would increase by 1.5% this year. The increase in May was boosted by agro exports, the construction sector, consumption and extractive industries, according to a private report.

The latest release indicates that the Argentine economy seems to be rebounding and picking up speed, since May was the seventh month running of higher performance compared to the same period a year ago.

During the first five months of the year, according to Indec, the economy has been expanding at an annualized 1.4%. In effect the Indec index showed January activity increased 0.6%; February, 1.1%; March, 1.6%; April, 1.7% and finally in May, 2.2%.

In related news the Argentine official gazette published on Friday the increase in the minimum wage, following the agreement reached earlier this week by the government of Cristina Fernandez, union leaders and business representatives.

The resolution by the Argentine Council of Employment, Productivity and Minimum Wage reported the agreed 28.5% increase, taking salaries to 5,588 Pesos (588 US dollars approx at the official rate) as for August 1 and to 6,060 Pesos(637 dollars approx) starting in January next year.

In the resolution, the government said “measures that tend to sustain and improve the level of production and employment and the consistent impact in a better wealth distribution” were needed, praising the “strengthening of social dialogue and the democratic culture in the field of labor relations.”

Earlier this week when the announcement of the agreement on the minimum salary, president Cristina Fernandez boasted it was the highest in all of Latin American countries. However it must be taken into account that official Indec inflation is estimated at an annualized 15% while that of the so called Congress Index, from opposition lawmakers, almost 28%.