ECONOMIC ACTIVITY GREW 12.8% IN AUGUST YEAR-ON-YEAR

Argentina’s economic recovery gained momentum in August, thanks to an acceleration of the Covid-19 vaccination campaign and the loosening of government-imposed restrictions on circulation and trade.

Economic activity increased 1.1 percent in August from the previous month, according to government data released by the INDEC national statistics bureau on Thursday. Compared to the same month of 2020, activity grew 12.8 percent.

Between January and August of this year, gross domestic product is up 10.8 percent on the previous year, said INDEC

Growth was driven by services benefiting from the lifting of restrictions, such as community and social activities, hotels and restaurants, and construction.

Argentina’s government managed to intensify its vaccination drive in August, outperforming regional peers Brazil, Colombia and Mexico, and paving the way for a sustained reopening of activity. More than 55 percent of Argentines are fully vaccinated.

Most private economists project that the economy will grow 7.6 percent this year, driven by a rebound in consumption in the second half of the year. Argentina has been in recession since 2018 and the economy contracted 9.9 percent last year, hit hard by the coronavirus pandemic.