BUENOS AIRES: Argentina’s GDP expanded 0.2% qoq (seasonally adjusted, non-annualized) in the first quarter of 2015, according to the government’s INDEC. This was above the consensus estimate of no growth (0.0% qoq).
On an annual basis real GDP rose 1.1%, slightly below median market estimate of 1.2% yoy in the latest Bloomberg survey.
Domestic demand rose 1.5% yoy, driven by a 8.0% yoy increase in public consumption.
On the external front, exports fell 1.4% yoy, but imports had a much sharper decrease of 6.1% yoy.
From a supply side perspective, the fishing sector had the weakest performance falling 8.5% yoy, followed by a 6.5% yoy drop on import taxes.
The sectors of utilities, construction, and agriculture rose 6.0% yoy, 5.0% yoy and 4.6% yoy respectively.
Meanwhile, the four quarter rolling current account deficit widened slightly to 1.0% of GDP in 1Q 2015 from 0.9% of GDP last quarter.
The services account led the increase as its deficit rose to 0.6% from 0.5% of GDP, while the trade balance and income balance accounts were unchanged at 1.8% and 2.2% of GDP, respectively.
More specifically, the 1Q 2015 current account balance stood at -$3.7bn, versus the -$2.7 billion expected by market consensus.
