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Macroeconomic outlook report: Argentina

Fourth quarter of 2017

During the fourth quarter of 2017, the Argentinian economy recorded an acceleration of 0.15 p.p. in its year-over-year growth rate in comparison with the previous quarter, standing at 3.95%. The y/y growth rate of domestic demand increased 1.24 p.p. to 9.06%. Regarding the labor market, the unemployment rate went down compared to the third quarter of 2017, reaching 7.20%, and the year-over-year growth rate of employment accelerated 0.74 p.p., standing at 2.63%. The Argentinian peso depreciated against the US dollar, registering an exchange rate of 17.55 $/USD. Lastly, the inflation stood at 22.28%.

Macroeconomic overview

  • During the fourth quarter of the year, the Argentinian economy registered acceleration in the year-over-year growth rate of GDP of 0.15 p.p. when compared to the previous quarter, up to a rate of 3.95%. This growth was mainly driven by the acceleration of the domestic demand, which registered a y/y increase of 9.06%, due to the rise of investment, 20.70% higher than 4Q16. In annual terms, the Argentinian GDP growth rate stood at 2.86% in 2017, a 4.59 p.p. increase in comparison with the previous year.
  • As for the labor market, the unemployment rate went down to 7.20%, and the year-over-year growth rate of employment accelerated to 1.47% when compared to the third quarter.
  • The Argentinian peso depreciated against the US dollar in 0.27 pesos per dollar during the last quarter of 2017, registering an exchange rate of 17.55$/USD. This depreciation continues with the trend started at the end of 2015, when the restrictions on the exchange market were eliminated, allowing currency entrances.
  • The inflation stood at 22.28% in the fourth quarter of 2017, which is 0.56 p.p. below the rate registered in the previous quarter, not reaching the goal of the BCRA, fixed at 14%.

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.