During the first quarter of 2021, the year-on-year variation of Argentina's GDP recovered from the previous quarter's decline and stood at a rate of 2.48%. Regarding the labor market, the unemployment rate decreased with respect to the previous quarter, down to a rate of 10.20%; while the y/y employment growth rate continued to record a negative rate, of -1.02%, despite increasing compared to the previous quarter. In terms of prices, the inflation rate stood at 38.20%, after increasing with respect to the previous quarter. On the other hand, the Argentine peso continued to depreciate against the dollar in the first quarter of the year, reaching an exchange rate of 88.57 pesos per dollar.

 


Macroeconomic outlook report: Argentina 1Q21

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Macroeconomic overview

  • During the first quarter of 2021, the year-on-year variation of Argentina's GDP increased by 6.76 p.p. from the previous quarter to 2.48%. This gradual recovery was due to the easing of pandemic containment measures, which allowed the economy to gradually reopen and domestic demand to recover.
  • Regarding the labor market, the unemployment rate recorded a decrease of 0.80 p.p. compared to the previous quarter, and stood at a rate of 10.20%. Employment in Argentina continued to record a negative y/y growth rate, standing at a rate of -1.02%, despite increasing by 0.81 p.p. with respect to the previous quarter.
  • In 1Q21, the Argentine peso recorded a devaluation against the dollar, recording an average exchange rate of 88.57 pesos per dollar, which was 8.52 pesos per dollar more than in the fourth quarter.
  • During the first quarter of the year, the variation of the price index stood at 38.20%, after recording an increase of 3.53 p.p. with respect to the previous quarter.

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