Argentina's GDP Expands 8.3% YoY in Q2

In the second quarter of 2013, Argentina’s GDP expanded at its fastest pace in almost two years, beating market expectations. The economy grew 8.3 percent compared with the same quarter of 2012, due to the good performance of the auto and agricultural sectors.
Krisztina Györffy | 9/23/2013 12:16:15 PM
On the production side, agriculture and fishing grew the most (up by 26.86 percent and 51.6 percent year-on-year, respectively). While manufacturing and construction expanded for the first time in five quarters (up by 4.1 percent and 2.23 percent, yoy), mining shrank for the second quarter in a row by 0.1 percent.

The services sector expanded by 8.8 percent, up from 5.4 percent in the first three months of 2013. Among services, the biggest increases were recorded for financial intermediation activities, wholesale and retail trade and transport, storage and communication (year-on-year growth rates of 24.1, 14.2 and 9.1 percent respectively)

On the expenditure side, gross fixed capital formation recorded the highest growth rate (up by 16.2 percent year-on-year), due to a 30.5 percent increase in investment of durable equipment.  Private and public spending accelerated to 9.2 percent and 8.6 percent respectively, from 6.4 and 6.1 percent respectively in the previous quarter. While imports increased 21.3 percent yoy, exports reported the first expansion in five quarters (up by 4.4 percent).

On quarter-on-quarter basis, the economy grew a seasonally adjusted 2.6 percent, up from 2.2 percent in the first three months of 2013.