Argentina seems to have escaped its recession, with the country’s national statistics agency reporting that the economy grew by 0.3% in the first quarter of this year compared to the same period last year.
The agency’s numbers are credible and reliable, say international financial analysts, adding that the government of Mauricio Macri revamped the statistics agency last year.
This is the first credible information that confirms that Argentina’s economy is growing after Macri began implementing sweeping reforms to increase confidence in his country’s economy and make it more market-friendly.
Considering the International Monetary Fund report used late last year, Argentina’s GDP will grow 3% in 2017. In its recent report, the Universidad Torcuato Di Tella says there is little chance of Argentina falling back into recession.
Today, financial, construction, and agricultural sectors are driving the growth, but the IMF says foreign investment and exports would stoke tremendous growth in the months to come.
The economy suffered a contraction of more than 2% last year, but foreign investment is now rising like never before and inflation has almost halved from a high of around 40%.
Argentina sold US$16 billion worth of bonds this year, ending a decade of isolation from international credit.
Foreign investment could pick up this year if Macri’s Pro party does well in the October election. A strong show of support for the ruling coalition will enable the government to press on with more economic reform programs, including a tax reform aimed at improving competitiveness.