Argentina’s GDP rebounded 10.3% in 2021 and advanced 8.6% in the fourth quarter2 min read
The Gross Domestic Product (GDP) of Argentina registered a year-on-year increase of 8.6% in the fourth quarter of last year and accumulated a recovery of 10.3% in 2021 after three years of severe economic recession.
As reported this Wednesday by the National Institute of Statistics and Censuses (Indec), between October and December last the GDP increased by 1.5% in relation to the third quarter of 2021, the second consecutive quarterly rise since the stumble of the second quarter, although with a marked slowdown from the positive rate of 4% recorded in July-September.
The report also shows that Argentina accumulated four consecutive quarters with year-on-year growth in GDP, although the level of expansion in the fourth quarter is below the recovery rates achieved in the two previous quarters.
According to the official report released this Wednesday, of the 17 sectors that make up the GDP, in 16 of them an improvement in activity was observed in 2021.
Among the weighty sectors, construction (27.1%), hotels and restaurants (23.5%), industry (15.8%) and commerce (13.2%) stood out.
The only sector that registered a small contraction in activity in 2021 was agriculture and livestock, with a decline of just 0.3%.
Likewise, according to official data, in 2021 progress was made in all components of GDP.
Thus, last year global supply increased by 12.3%, due to the 10.3% growth in GDP and the 21.5% increase in imports of goods and services.
Meanwhile, global demand advanced 12.3%, with a 32.9% increase in gross fixed capital formation and a 9% rise in exports, while private consumption grew 10.2% and consumer public increased by 7.8%.
Severely affected by the covid-19 pandemic, Argentina’s GDP had experienced a 9.9% collapse in 2020, after having fallen 2.5% in 2018 and 2.1% in 2019.
According to the refinancing agreement reached this month by the Government of Alberto Fernández with the “staff” of the International Monetary Fund, the country will grow this year between 3.5% and 4.5%, while for the private economists who consult the Central Bank for its survey of expectations, the Argentine economy would grow this year by 3%.
In addition, it is reported in the statistical data that IRAIC obtained higher rates of economic recovery in the last year of 2021 and in the course of 2022, maintaining supply of market products and low rates of their values, mainly in the livestock, agriculture and energy.