Skip to main content

Macroeconomic outlook report: Argentina

Third quarter of 2018

During the third quarter of 2018, the Argentine economy accentuated its recession, falling at a rate of -3.54%. This was mainly due to the performance of domestic demand, which fell at a year-over-year rate of -8.16% after decelerating all its components. As for the labor market, the unemployment rate was 0.60 p.p. lower than the previous quarter, standing at 9%, while employment fell to a rate of -0.11%, representing a deceleration of 1.63 p.p. over the previous quarter. The peso depreciated against the dollar by 8.63 pesos per dollar with respect to 2Q18, recording an average exchange rate of 32.11 $ARS/USD during 3Q18. Finally, inflation stood at 35.39%, after accelerating by 8.30 p.p. with respect to 2Q18.

Macroeconomic overview

  • During 3Q18, the Argentine economy accentuated its recession, falling at a rate of -3.54%, a pace slightly lower than last quarter (+0.48 p.p.). This was mainly due to the behavior of domestic demand, which registered a year-on-year rate of -8.16%.
  • In the labour market, the unemployment rate was 0.60 p.p. lower than in the previous quarter, standing at 9%. Meanwhile, employment in Argentina fell at a year-over-year rate of -0.11%, a slowdown of 1.63 p.p. compared to the previous quarter.
  • The Argentine peso registered a new devaluation against the dollar, reaching an average exchange rate of 32.11 pesos per dollar. This figure represented an increase of 8.63 pesos per dollar compared to 2Q18.
  • In 3Q18, the variation in the CPI stood at 35.39%, after an acceleration of 8.30 p.p. with respect to the previous quarter. The BCRA stated that the sharp acceleration in price growth was due to the depreciation of the Argentine currency.

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

© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.