Argentine economy recovers in August to pre-pandemic levels

Argentina's Statistics and Census Institute (INDEC) reported today that August GDP recovered to its highest level since October 2019 - its first monthly reading above February 2020 pre-COVID levels for the first time since the start of the pandemic.

GDP grew 1.1% in August, and 12.8% from a year earlier.

The nation's economy - the third-largest in Latin America - grew by 10.8% so far this year, after plummeting 9.9% in 2020.

Growth in August was led by recreational and other services (77.4%) and tourism (35%) - the hardest-hit sectors by crowding and travel restrictions in force during much of 2020.

These sectors however remain 17.7% and 42.3% below August 2019 levels, respectively.

Strong growth was also seen in construction (26.7%), retail and wholesale (15.6%), and manufacturing (13.7%) - all showing improvements over 2019 averages of 5.3%, 11.3%, and 10.4%, respectively.

Fixed investment in August in turn jumped by 26.3% from a year earlier according to Orlando Ferreres, a top local macroeconomy consultant - its highest level in two years.

Argentina's recovery - which outperformed initial IMF projections of 4.5% growth - prompted a jump in imports in the first nine months of 2021 of 51.5% (34.5% by volume).

But a sharp rise in export prices (with volume up 10%) allowed merchandise trade surpluses so far this year to edge up to $12.3 billion - though most is devoted to servicing Argentina's $190 billion public foreign debt, which had doubled during the 2015-19 Mauricio Macri administration.

At: https://www-eldestapeweb-com.translate.goog/economia/indec/la-actividad-economica-subio-1-1-y-supero-por-primera-vez-el-nivel-previo-a-la-pandemia-2021102116200?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=nui

Crowds enjoy seaside Mar del Plata during the October 8-11th long weekend - the first since occupancy and crowding restrictions were lifted in Argentina in late September.

Though growth rates have slowed since January amid rising inflation, GDP grew 10.8% in the first 8 months of 2021 year-on-year.

But three years of recession still left August 2021 GDP some 7% below its early 2018 highs, before the "Macrisis" debt bubble collapse and later Covid-related restrictions battered the nation's economy.