Argentina's economy expands 3.3% in third quarter

BUENOS AIRES, Dec ⁠16 (Reuters) - Argentina's economy ⁠expanded ‍3.3% in the third quarter from the previous quarter, official data showed on Tuesday, marking ‍its fourth straight quarterly gain, but below analysts’ ​expectations.

Analysts had forecast growth of 3.5% for the September to December ​period.

The year-on-year increase was driven mainly by a sharp rise in gross fixed investment, with gains also recorded in financial intermediation, ​mining and quarrying, and the hospitality sector, Argentina’s national statistics agency INDEC said in a report.

In seasonally ​adjusted terms, GDP grew 0.3% compared to the second quarter of the year, ‌INDEC added.

President Javier Milei’s party secured a commanding win in the midterm legislative elections in ​late October, reflecting broad support ⁠for his economic agenda despite the government's harsh austerity measures. Argentine assets rose sharply immediately ‌following the midterm victory.

Economists are watching how Latin America’s third-largest economy consolidates its recovery after exiting recession late last ‌year, with domestic consumption and industrial output still under pressure.

Analysts still ‌warned that Milei's stronger-than-expected midterm showing underscores voter concerns about a return to past economic crises and a willingness to give his ‍high-stakes economic overhaul more time, despite unease over austerity.

The government expects the economy to ⁠grow 5.4% in 2025, while the central bank’s latest Market Expectations Survey (REM) forecasts growth of 4.4% for the year.

(Reporting by Jorge Otaola and Walter Bianchi, Writing by Iñigo Alexander, Editing by Natalia Siniawski)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Mexican governor accused by US of cartel ties returns to office
• Boeing white-collar union contract vote results expected today
• Artificial intelligence could push up inflation - SNB's Tschudin says