Argentina reported an increase in economic activity within multiple sectors this month compared to months prior, as the National Institute of Statistics and Census (INDEC) reported yesterday that economic activity grew 0.8% in comparison to March 2016.
The report went on to demonstrate that economic activity expanded by 1.9 percent when compared to February, thus changing the previous’ month’s negative trend, as the economy had contracted 2.6 percent when compared to January’s. With the 0.8% growth in March, the first quarter of 2017 closed with a positive inter-annual variation of 0.1%.
When comparing this quarter’s activity with the previous one, the agency reported that it recorded a 0.6% expansion of economy.
Breaking the numbers down by sector is helpful to understand the cause of this economic increase as it shows potential areas for problems and growth. There have been multiple segments which saw declines as well others which faced a rise in economic activity.
So what increased? The construction segment, by 7.8%, mostly due to the expansion of public works projects; agriculture did so by 5.8% (compared to March 2016), and the financial sector by 5.2%. Transport and communications improved by 3.7%, while the energy sector, which has seen constant growth lately, continued to increase by 3.3% this March. Real estate had a positive change of 2.8% and the hotel and restaurant sector went up 1.6%.
Consumption has consistently dropped during the past months, but March marked a 0.4% positive change. This reverses the negative 5.1% status in Feburary.
However, the mining industry and fishing industry decreased by 4% and 6.5%, respectively. The INDEC also showed a 0.2% fall in the manufacturing industry, although it asserts that the rate of decrease is actually slowing down. This is the least sever decrease since February 2016.
All of these figures correlate with the Monthly Estimator of Economic Activity (EMAE). These numbers are released as the evolution of the Gross Domestic Product (GDP) that is published four times per year.