Argentina’s economic recovery picked up some momentum at the beginning of the year, reversing a couple months of slowing growth, according to official data.
Economic activity rose 1.9 percent in January compared to December, the fastest pace in four months, according to data from the INDEC national statistics bureau published Tuesday. From a year ago, the economy contracted two percent, better than the 2.5 percent average fall expected by economists in a Bloomberg survey.
On an annual basis, construction, manufacturing and finance sectors posted gains during the month. while the tourism industry continued to suffer the most, hindered by travel restrictions and a slow Covid-19 vaccine campaign. Widespread price controls and uncertainty about the government’s economic plans continued to weigh down commerce too.
Argentina has been in recession for three years, though the economy is expected to grow this year for the first time since 2017 after contracting 9.9 percent in 2020. However, all economic indicators point to a long recovery before the country returns to pre-recession levels.
The International Monetary Fund forecasts an economic recovery of 4.5 percent this year, though the Alberto Fernández administration hopes for seven percent growth.