Argentina’s national statistics agency INDEC announced yesterday that Gross Domestic Product (GDP) rose 3.9 percent in the fourth quarter of 2017, compared to the same quarter of 2016. Overall annual growth for all of 2017 was 2.9 percent. Because we’re nice like that, we pored through INDEC’s documents and statistics and pulled out the most important facts for you to know, in context.
According to INDEC, the most important factors that contributed to the GDP growth were investment and agriculture, as well as a small increase in consumer spending. As you can see in the chart below, agriculture saw a major spike in the second quarter of 2017.
Why does it matter?
A country’s GDP plays a huge role when it comes to attracting investment. A growing GDP usually means more favorable interest rates, which means more investment, which ideally, means more growth (it’s a virtuous cycle). President Mauricio Macri has promised that his center-right economic policies will sustain gradual growth and attract international investment to continue said growth, so naturally, these statistics are really important to him as proof of his economic and fiscal policies.