BUENOS AIRES--Argentina's economy continued to expand at a modest pace in November, confirming expectations that a recovery took hold in the fourth quarter.
The national statistics agency, Indec, said its monthly economic activity indicator rose 0.4% on the month, and was up 1.8% from November 2011.
The economy grew 1.9% during the first 11 months of the year, Indec said. The indicator, known by its Spanish acronym as Emae, includes most of the components used to calculate quarterly gross domestic product.
After expanding 8.9% in 2012, Argentina's once high-flying economy hit the skids last year due to a crop-killing drought, weak exports to Brazil, and policy blunders at home.
Indec is thought to overstate growth somewhat due to the widespread belief among economists that the agency underreports inflation.
Most economists think annual inflation is now around 25%, while Indec said its consumer price index rose 10.8% last year. Research firm Orlando J Ferreres & Asociados' proprietary monthly activity indicator found that the economy shrank 0.3% last year.
"The outlook for 2013 is for activity to register a certain rebound depending on the recovery in the agriculture sector, greater industrial activity led by the automobile industry and continued growth in the financial sector," the firm said in a report.
The central bank's latest forecast puts 2013 GDP growth at 4.6% on the back of a stronger Brazilian economy and record Argentine soybean harvest.
nasdaq.com
The national statistics agency, Indec, said its monthly economic activity indicator rose 0.4% on the month, and was up 1.8% from November 2011.
The economy grew 1.9% during the first 11 months of the year, Indec said. The indicator, known by its Spanish acronym as Emae, includes most of the components used to calculate quarterly gross domestic product.
After expanding 8.9% in 2012, Argentina's once high-flying economy hit the skids last year due to a crop-killing drought, weak exports to Brazil, and policy blunders at home.
Indec is thought to overstate growth somewhat due to the widespread belief among economists that the agency underreports inflation.
Most economists think annual inflation is now around 25%, while Indec said its consumer price index rose 10.8% last year. Research firm Orlando J Ferreres & Asociados' proprietary monthly activity indicator found that the economy shrank 0.3% last year.
"The outlook for 2013 is for activity to register a certain rebound depending on the recovery in the agriculture sector, greater industrial activity led by the automobile industry and continued growth in the financial sector," the firm said in a report.
The central bank's latest forecast puts 2013 GDP growth at 4.6% on the back of a stronger Brazilian economy and record Argentine soybean harvest.
nasdaq.com
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