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BUENOS AIRES, Dec 16 (Reuters) – Argentina’s economic system expanded 11.9% on a year-on-year foundation within the third quarter of 2021, the nation’s statistics company mentioned on Thursday, in step with expectations of a pointy rebound from the ten.2% contractionin the identical interval final yr.
The South American grains-producing nation has seen its economic system get better extra rapidly than initially anticipated after taking a giant hit from the COVID-19 pandemic, with the federal government nudging up its annual progress forecast for 2021 to round 10%.
A Reuters ballot of 17 native and international analysts had predicted a median 12% enlargement for the July-September quarter.
“Within the third quarter, a restoration in consumption stood out,” mentioned Isaías Marini, an economist at consultancy Econviews, who had forecast a 12% rise and anticipated the restoration to final into the ultimate quarter of the yr as salaries picked up.
“The wage enhancements, current easing (of restrictions) and the reactivation of credit score recommend the yr will finish even above 10%. However short-term dangers are the shortage of reserves to finance progress, and the ensuing alternate fee instability.”
“One of many greatest drivers right now comes from the extractive exercise of oil and gas manufacturing. The agricultural sector can be displaying an excellent efficiency and outlook,” mentioned Pablo Besmedrisnik, economist at consulting agency Invenómica.
“The 2 sectors are key to getting the international alternate Argentina wants within the quick and medium time period.”
The South American nation posted a 17.9% GDP rise within the second quarter of 2021.
Reporting by Hernan Nessi; Enhancing by Adam Jourdan, Kirsten Donovan and Paul Simao