Argentina’s economy expanded more than expected in November, continuing to show signs of recovery after surpassing growth forecasts in the third quarter.
Economic activity rose 0.9 percent from October, more than the 0.4 percent median estimate of economists surveyed by Bloomberg. From a year ago, activity grew 0.1 percent, also more than expected, according to government data published Thursday.
South America’s second-largest economy is showing signs of improvement after a deep slump exacerbated by President Javier Milei’s austerity.
Wages in Argentina grew 4.6 percent in October from September, surpassing monthly inflation for the seventh straight month after price increases wiped out pay-cheques earlier in the year. With wages picking up, the government estimates that the poverty declined below 39 percent in the third quarter after surpassing 54 percent at the start of the year.
Fishing, finance and mining helped drive annual growth in November, while construction and manufacturing posted declines. Argentina’s third-quarter growth was driven by capital expenditures, consumer spending, and exports.
Beyond wages, job growth is slowly picking up. Private sector employment gained for the fourth consecutive month in October. The International Monetary Fund estimates gross domestic product will expand five percent this year.
by Manuela Tobias, Bloomberg
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