During the second quarter of 2020, the Argentine economy registered a significant decrease in its GDP year-over-year growth rate, down to -19.09%. Among the main causes for this performance was the partial paralysis of the economy, both in Argentina and in the rest of the world, as a containment measure to mitigate the impact of the virus. In the labor market, the unemployment rate increased compared to the previous quarter, up to 13.10%, while the year-over-year growth rate of employment decreased with respect to the previous quarter down to -2.95%. Regarding prices, inflation stood at 42.53%, after recording a deceleration compared to the previous quarter. Finally, the Argentine peso depreciated to 67.68 pesos per dollar.
Macroeconomic outlook report: Argentina 2Q20
- During 2Q20, Argentina’s economy recorded an unprecedented contraction in its GDP year-over-year growth rate, registering a rate of -19.09%, 13.91 p.p. below the rate recorded during the previous quarter. Among other factors, this behavior was due to the containment measures adopted to limit the spread of the virus, which in Argentina were particularly strict and were in force throughout the second quarter of the year.
- In the labor market, the unemployment rate increased by 2.70 p.p. compared to the previous quarter up to 13.10%. The year-over-year growth rate of employment fell by 2.22 p.p. compared to the previous quarter, down to -2.95%.
- During 2Q20, the Argentine peso depreciated against the dollar, reaching an average exchange rate of 67.68 pesos per dollar, 6.19 pesos per dollar more than in 1Q20.
- During the second quarter of the year, the variation of the price index stood at 42.53%, after a deceleration of 6.47 p.p. with respect to the previous quarter.
For more information, click here to access the executive document in pdf (only avalaible in Spanish).