The economy of Argentina expanded 0.6 percent year-on-year in the second quarter of 2019, following a 5.8 contraction in the previous period. It was the first annual growth rate since Q1 2018, driven by agriculture, livestock & forestry (46% vs 8.2% in Q1); mining & quarrying (1.1% vs -0.9%); and transport & communications (0.9% vs -4.4%). Also, output shrank less in manufacturing (-6.7% vs -10.9%); construction (-5.6% vs -6.2%); wholesale & retail trade (-9.3% vs -12.7%); hotels & restaurants (-2.1% vs -2.8%); public administration & defense (-0.1% vs -0.6%); and other services (-1.7% vs -2.1%). On a quarterly basis, the GDP contracted 0.3 percent, after stalling in Q1. The modest economic growth comes ahead presidential elections in October 27th, after a defeat for President Macri in the primary vote, which led to a further rise in inflation and a sharp decline in the currency. GDP Annual Growth Rate in Argentina averaged 2.29 percent from 1994 until 2019, reaching an all time high of 16.20 percent in the second quarter of 2010 and a record low of -16.30 percent in the first quarter of 2002.
GDP Annual Growth Rate in Argentina is expected to be -2.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Argentina to stand at -1.70 in 12 months time. In the long-term, the Argentina GDP Annual Growth Rate is projected to trend around 1.50 percent in 2020, according to our econometric models.