During the second quarter of 2018, the Argentine economy entered recession, slowing its year-over-year growth rate by 8.10 p.p. to -4.24%. The main cause of this GDP performance was the fall in domestic demand, which suffered a deceleration of 5.61 p.p. to -0.37%. This was combined with the slowdown in exports of 13.82 p.p. to -7.47%. In the labor market, the unemployment rate increased 0.50 p.p. compared to the first quarter of 2018, to 9.60%, while the employment creation rate slowed by 0.58 p.p. to 1.52% year-over-year. The peso depreciated against the dollar by 19.17% with respect to 1Q18, recording an exchange rate of 23.48 ARS/USD. Finally, inflation stood at 24.20%, after accelerating by 2.24 p.p. with respect to 1Q18.
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