Argentina: Economic activity expands at quickest pace since May in November
Latest reading: The monthly indicator for economic activity (EMAE) rose 0.1% in year-on-year terms in November, which contrasted October’s 0.6% decrease and market expectations for a contraction. November’s print marked the best reading since May. In November, the finance and mining sectors drove growth—the latter likely aided by higher output from the Vaca Muerta field—while construction continued to decline by double digits due to the halt of public works projects.
On a monthly basis, economic activity increased 0.9% in November, which was also above market expectations, better than October’s 0.6% expansion and marked the seventh straight month of growth. Meanwhile, the trend improved, with the annual average variation of economic activity coming in at minus 2.6%, up from October’s minus 2.7% reading.
Panelist insight: On the reading and outlook, Goldman Sachs’ Sergio Armella said:
“After a significant contraction through April, real GDP as measured by the EMAE monthly activity indicator has expanded in all subsequent months. We expect this to continue in the coming months supported by positive real wage growth and increasing credit to the private sector.”