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Macroeconomic outlook report: Argentina

Third quarter of 2017

During the third quarter of 2017, Argentinian GDP recorded an acceleration of 1.52 p.p. in its y/y growth rate with respect to the previous quarter, to 4.20%. This behaviour was explained by the acceleration of domestic demand and the stronger growth of investment. With regard to the labour market, the unemployment rate decreased by 0.40 p.p. down to 8.30%. The Argentinian peso depreciated with respect to the dollar in this quarter, reaching 17.28 ARS/USD. Inflation stood at 22.84% in 3Q17, after decreasing by 0.44 p.p. with respect to the previous quarter.

Macroeconomic overview

  • Argentinian GDP y/y growth rate experienced an increase of 1.52 p.p. during the third quarter of the year with respect to the previous one, up to a rate of 4.20%, thus consolidating the recovery period started in 1T17. The main driver of this behavior was the acceleration of domestic demand and the stronger growth of investment during this quarter.
  • Domestic demand registered an increase in its y/y growth rate, standing at 8.40% in 3Q17. The increase in investment of 2.50 p.p., up to 2.10%, boosted domestic demand in this quarter.
  • Regarding the labour market, the unemployment rate stood at 8.30% in the third quarter of 2017, which represents a decrease of 0.40 p.p. when compared to the previous quarter. This decrease is explained by the increase in the number of employed persons in 3Q17 when compared to 2Q17.
  • The exchange rate of the Argentinian peso stood at 17.28 ARS/USD in this period, thus maintaining the devaluation trend initiated in 2008.
  • Inflation stood at 22.84% in 3Q17, after decreasing for the fifth semester in a row, by 0.44 p.p. when compared to the previous quarter. The BCRA maintained its monetary policy reference rate at 26.25% in the third quarter of the year.

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

© GMS Management Solutions, S.L., 2018. 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.