Argentina’s economy grew 11.9 percent in the third quarter Business and Economic News

The South American nation has seen its economy recover faster than expected after a major blow to COVID-19.

Argentina’s economy grew 11.9 percent in the third quarter of 2021, the country’s statistics agency said on Thursday, forecasting a sharp rebound from a 10.2 percent contraction in the same period last year.

The grain-producing nation of South America has seen its economy recover faster than initially expected after the COVID-19 pandemic hit hard, with the government raising its 2021 annual growth forecast to 10 percent.

A Reuters News Agency poll conducted by 17 local and foreign analysts predicted an average spread of 12 percent in the July-September quarter.

“In the third quarter, the recovery in consumption was highlighted,” said economist Isaías Marini of Econviews, which predicted a 12 per cent rise and expected a recovery in the last quarter of the year as wages rose.

“Wage improvements, recent easing [of restrictions] and the reactivation of credit suggests that the year will end by more than 10 percent, ”Marini said. “But the short-term risks are the scarcity of reserves to finance growth and the resulting instability in the exchange rate.”

Pablo Besmedrisnik, an economist at the consulting firm Invenómica, said: “One of the biggest players today is oil and fuel production. The agricultural sector is also showing good behavior and foresight. ”

“Both sectors,” said Besmedrisnik, “are key to Argentina’s short- and medium-term foreign exchange needs.”

The South American nation had a 17.9% increase in gross domestic product in the second quarter of 2021.