During the third quarter of 2020, the year-on-year variation of Argentina's GDP moderated its contraction with respect to the previous quarter and stood at a rate of -10.24%. Regarding the labor market, the unemployment rate decreased with respect to the previous quarter, down to a rate of 11.70%; while the y/y employment growth rate continued to record a negative rate, of -2.46%, despite increasing compared to the previous quarter. In terms of prices, the inflation rate stood at 38.33%, after decreasing with respect to the previous quarter. On the other hand, the Argentine peso continued to depreciate against the dollar in the third quarter of the year, reaching an exchange rate of 73.32 pesos per dollar.

 


Macroeconomic outlook report: Argentina 3Q20

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Macroeconomic overview

  • During the third quarter of 2020, the year-on-year variation of Argentina's GDP moderated its contraction by 8.73 p.p. with respect to the previous quarter and stood at a rate of -10.24%. Among the main causes of this partial recovery was the partial recovery of the domestic demand compared to the second quarter, as a result of the relaxation of some of the containment measures and the gradual reopening of economic activities.
  • Regarding the labor market, the unemployment rate recorded a decrease of 1.40 p.p. compared to the previous quarter, and stood at a rate of 11.70%. Employment in Argentina continued to record a negative y/y growth rate, standing at a rate of -2.46%, despite increasing by 0.33 p.p. with respect to the previous quarter.
  • In 3Q20, the Argentine peso recorded a devaluation against the dollar, recording an average exchange rate of 73.32 pesos per dollar, which was 5.65 pesos per dollar more than in the second quarter.
  • During the third quarter of the year, the variation of the price index stood at 38.33%, after recording a decrease of 4.20 p.p. with respect to the previous quarter.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).