The South American nation has seen its economy recover faster than expected after being hit hard by COVID-19.
Argentina’s economy grew 11.9% on an annual basis in the third quarter of 2021, the country’s statistics agency said on Thursday, in line with expectations of a sharp rebound from the 10.2% contraction in the same period last year.
The grain-producing South American nation has seen its economy recover faster than expected after being hit hard by the COVID-19 pandemic, as the government raised its annual growth forecast for 2021 to around 10%.
A Reuters news agency poll of 17 local and foreign analysts had predicted a median expansion of 12% for the July-September quarter.
“In the third quarter, a recovery in consumption stood out,” said Isaías Marini, an economist at consultancy Econviews, who had forecast a 12% rise and expected the recovery to last until the last quarter of the year with rising wages.
“Wage improvements, recent relaxations [of restrictions] and credit reactivation suggest the year will end even above 10%,” Marini said. “But the short-term risks are the scarcity of reserves to finance growth and the resulting exchange rate instability.”
Pablo Besmedrisnik, an economist at consultancy Invenómica, said: “One of the main drivers today comes from the extractive activity of oil and fuel production. The agricultural sector is also showing good performance and good prospects.
“Both sectors,” Besmedrisnik said, “are key to getting the foreign exchange Argentina needs in the short to medium term.”
The South American nation recorded a 17.9% increase in gross domestic product in the second quarter of 2021.