MACROECONOMIC PERFORMANCE

GDP Reference Last Previous Units

Private 2019 Q2 13,801,955,035 12,237,524,981 Ths.

Consumption ARS,
NSAAR
Nominal 2019 Q2 21,502,303,713 17,555,535,048 Ths.
Gross ARS,
Domestic NSAAR
Product
Government 2019 Q2 3,111,472,565 2,662,389,822 Ths.
Consumption ARS,
NSAAR

Here we can see that for Argentina there has been an increase in overall GDP when compared to 2018Q2.
The major reason for this is increase in consumption level in the country. There has been an increase in
GDP at 1.8% YoY in June 2019 after a negative growth of 6.4% in the previous quarter.

Price Reference Last Previous Units

Consumer Sep-19 253.71 239.61 Index
Price Dec2016=100,
Index NSA
(CPI)
Producer Sep-19 419.15 401.1 Index
Price 2015=100,
Index NSA
(PPI)

There has been an overall increase in CPI when compared to last 2018Q2. The major reason for this was
the sharp depreciation of the peso because of unexpected large defeat of Macri in the election. Clothing,
footwear, communication and health recorded highest acceleration in the prices.

Labor Reference Last Previous

Units
Wage & Aug-19 215.02 209.9 Index
Salaries Oct2016=100,
NSA
Total 2019 Q2 12,073,000 11,947,000 #, NSA
Employment

Unemployment 2019 Q2 10.6 10.1 %, NSA

Rate

Unemployment 2019 Q2 1,438,000 1,338,000 #, NSA

The unemployment rate in Argentina has increased from 10.1% to 10.6%, highest ever since President
Maurica Macri took office in December 2015. The major reason for this is increase in inflation rate which
shoot up to 57.3% because Macri lost in election in September 2019. Also, unemployment has increased
because of reduction in number of jobs in manufacturing industry and commerce.

Trade Reference Last Previous Units

Current 2019 Q2 -2,560 -3,685 Mil.
Account USD,
Balance NSA
Exports 2019 Q2 16,569 14,187 Mil.
of USD,
Goods NSA
Imports 2019 Q2 12,410 11,625 Mil.
of USD,
Goods NSA
Exports 2019 Q2 3,403,613,430 2,761,111,674 Ths.
of ARS,
Goods NSAAR
and
Services
Net 2019 Q2 354,579,108 6,068,634 Ths.
Exports ARS,
NSAAR

Here we can see that Current Account Balance has reduced which is a result of increase in exports of
Goods and Services. Net exports have increased because President Mr. Macri has lifted few of the taxes
on agricultural exports which is an important source for foreign currency.

Government Reference Last Previous Units

Government 2019 Q2 951,519 789,178 Mil.
Expenditures ARS,
NSA

Government 2019 Q2 -20,750 -50,162 Mil.

Budget ARS,
Balance NSA

Government 2019 Q2 930,768 739,016 Mil.

Revenues ARS,
NSA

Government Expenditures has increased because of various initiatives taken by Mr. Macri to stabilize the
economy of the Argentina. He tried various methods to reduce the inflation and increase the GDP growth
rate by increasing the Government spending.
 Business Reference Last Previous
Industrial Aug-19 -6.39 -1.75
Production

Capacity Aug-19 60.5 58.7

Utilization

There has a significant reduction the Industrial Production of the country which was a result of higher
inflation rate which was pertaining in the country. Many people lost their jobs in Manufacturing and
Commerce sector resulting to this condition.

Markets Reference Last Previous Units

Lending Aug-18 49.85 50.87 % p.a.,
Rate NSA
Treasury Jan-18 27.9 29.23 Annual
Bills Nominal
(over 31 %
days)

There has a decrease in lending rate as Government wanted to increase the investment in the country.
There were series of steps taken to buy more securities which resulted in reduction of lending rate.