Argentina's Economy Sees Modest Growth in August

Argentina's economic activity rose by 2.4% in August from the previous year, slightly below analyst expectations. Key drivers were financial intermediation and mining, while manufacturing and trade detracted from growth. The outlook remains uncertain with the impending legislative elections on October 26.

Argentina's economic activity experienced a 2.4% increase in August compared to the same period last year, according to the latest data from Argentina's INDEC statistics agency released on Wednesday.

This figure, representing Latin America's third-largest economy, slightly misses the 2.5% growth projection anticipated by analysts in a Reuters poll. The upward trend was largely fueled by significant advancements in financial intermediation, which surged by 26.5%, and mining, which rose by 9.3%. Conversely, manufacturing and trade negatively impacted the growth, jointly deducting over a percentage point from the annual progression with respective declines of 5.1% and 1.7%.

On a seasonally adjusted basis, August's activity saw a modest 0.3% rise from the previous month. INDEC's Monthly Economic Activity Estimator (EMAE) serves as a vital economic indicator, offering preliminary insights into broader economic growth trends in Argentina. However, the economic outlook remains uncertain as it is closely linked to the forthcoming legislative elections slated for October 26.

(With inputs from agencies.)