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ECONOMY | 21-09-2022 15:07

Argentina's second-quarter economic growth surpasses expectations

Economy grew more than expected in the second quarter of the year as rising commodity prices boosted exports.

Argentina's economy grew more than expected in the second quarter of the year as rising commodity prices boosted exports, even as rising inflation eroded consumer purchasing power.

Gross domestic product expanded one percent in the quarter from the previous three months, beating economists' median estimate of 0.7 percent growth. On a year-on-year basis, the economy grew by 6.9 percent, according to government data released on Tuesday.

Capital spending and exports drove activity during the quarter, while imports weighed on growth.

While Argentina's economy is expected to post positive economic growth in 2022, economists are currently forecasting a contraction in the second half.

A widening trade deficit, inflation heading towards 100 percent and political turmoil have weakened activity so far in the second half of the year, during which time President Alberto Fernández has had three economy ministers.

Analysts expect the economy to grow by 3.6 percent this year and to slow to one percent in 2023, according to the Central Bank's monthly survey.

by Patrick Gillespie, Bloomberg

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