Argentina’s economic activity lost strength in September, confirming its stagnant trend and confirming forecasts of a sharp slowdown in the pace of growth for next year.
According to the National Institute of Statistics and Censuses (Indec), the Argentine economy contracted by 0.3% in September compared to August, when the indicator had registered a slight increase of 0.7%.
In comparison with September 2021, the index, which serves as an estimate to measure the quarterly variation of the Gross Domestic Product (GDP), advanced 4.8%, reaching the 19th consecutive interannual increase.
However, this interannual increase registered in September represented a deceleration in comparison with the percentage accumulated in 12 months measured in August (6.6%).
“Economic activity is showing signs of exhaustion in the latter part of the year,” consultancy Orlando Ferreres y Asociados said in a statement.
The consultant ACM, in a comment reproduced by Clarín, pointed out that “the slowdown in growth was expected due to the hardening of access to foreign exchange for imports, which was adopted with the aim of protecting the Central Bank’s liquid reserves”. The company estimated that in 2022 the growth of the Argentine economy should be around 4.9%.
The consultancy LCG, in turn, pointed out that in a scenario of “economic uncertainty, rising inflation [88% no indicador interanual em
outubro] and higher cost of savings, consumption is anticipated and thus demand drives activity [econômica]🇧🇷
However, this dynamic may even be “successful” in the short term, but “is not sustainable in the long term due to the deterioration of installed capacity”.
According to official data, accumulated economic growth in the first nine months of the year was 6.2%.
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