Argentine Economic Overview

The Argentine Economy grew by 9.6% in November 2007 compared with the same month of 2006, driven by increased consumption. The economy has accumulated as a result, an expansion of 8.6% in the first eleven months of 2007.
The industrial activity rose by 7.5% in 2007, compared to 2006, led by the automobile sector (+25.4%), followed by the metal-mechanical industry (+9.5%) and non-metallic minerals for the construction sector (+7.4%). By contrast, man-made fibres and the dairy industry’s outputs decreased by 21.5% and 8.7% respectively. Private analysts are estimating a rise of 6 or 7% in industrial activity for 2008. (**)

The INDEC published provisory estimations on the Gross Domestic Product (GDP) for the third trimester of 2007 shows a positive variation of 8.7% in relation with the same period of 2006.

In particular the sector of goods’ production had an increment of 7.3%, during the third trimester of 2007, which was influenced by the increment of 7.6% in the level of activity of the manufacturers industry and the 9.7% increment in construction.

The service sectors registered an inter-annual increment of 9.0%, influenced primarily by the increment of the transport, storage and communications sectors by 13.7%, and by the hotels and restaurants sector by 8.3%. (***)

Evolution of Argentine Foreign Trade (as September 2007): (****)

• In the first half of the year, exports grew by 12% compared to the same period of the previous year.
• Sales of manufactures of industrial origin (MIO) increased by 16% mainly driven by export quantities.
• Primary products and manufactures of agricultural origin (MAO) grew following increases in prices, since quantities remained almost constant.
• Capital goods and intermediate goods contributed the most to import growth
• Trade in services showed a balanced behaviour in the first quarter, showing strong increases in both exports and imports. Export growth was mainly accounted for by travel and tourism, business services, and transport services.

(**) Economy Sector of the Argentine Embassy in the UK
(***) INDEC
(****) Trade and International Economic Relations Secretariat. Centre for International Economy.

Data courtesy of:

• Secretaría de Turismo de la Nación Argentina
• Argentine Embassy in the UK.
• INDEC
• Trade and International Economic Relations Secretariat. Centre for International Economy.