During the fourth 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 -4.27%. Regarding the labor market, the unemployment rate decreased with respect to the previous quarter, down to a rate of 10.96%; while the y/y employment growth rate continued to record a negative rate, of -1.80%, despite increasing compared to the previous quarter. In terms of prices, the inflation rate stood at 34.67%, after decreasing with respect to the previous quarter. On the other hand, the Argentine peso continued to depreciate against the dollar in the fourth quarter of the year, reaching an exchange rate of 80.05 pesos per dollar.

 


Macroeconomic outlook report: Argentina 4Q20

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Macroeconomic overview

  • During the fourth quarter of 2020, the year-on-year variation of Argentina's GDP moderated its contraction by 5.82 p.p. with respect to the previous quarter and stood at a rate of -4.27%. This gradual recovery was due to the easing of pandemic containment measures, which allowed the economy to gradually reopen and domestic demand to partially recover.
  • Regarding the labor market, the unemployment rate recorded a decrease of 0.74 p.p. compared to the previous quarter, and stood at a rate of 10.96%. Employment in Argentina continued to record a negative y/y growth rate, standing at a rate of -1.80%, despite increasing by 0.47 p.p. with respect to the previous quarter.
  • In 4Q20, the Argentine peso recorded a devaluation against the dollar, recording an average exchange rate of 80.05 pesos per dollar, which was 6.73 pesos per dollar more than in the third quarter.
  • During the fourth quarter of the year, the variation of the price index stood at 34.67%, after recording a decrease of 3.67 p.p. with respect to the previous quarter.

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