Argentina: We expect the economy to improve – Wells Fargo
According to the institute of statistics, Argentinean GDP grew at a rate of 0.8% during the fourth quarter and 2.1% in 2015. Analysts from Wells Fargo warned that results are very preliminary, subject to revisions and expect the economy to improve during 2016.
“With a preliminary reading of 0.9 percent on a year-earlier basis for Q4 2015, the Argentine economy managed to post a 2.1 percent growth rate for the whole of 2015. It is important to mention that these results are “very” preliminary and most likely will be revised considerably once the results for the first quarter of 2016 are released at the end of June. This is because Argentina’s statistical institute is in the process of fixing all of the data issues left by the previous administration, which means the revisions are expected to be important.”
“This preliminary release included information on the supply side of the economy but not on the demand side. However, some of the results on the supply side have hinted at a weak consumer as the year ended.”
“Although the new administration will face several challenges with inflation in 2016, we expect the economy to improve as the political and regulatory environment for the private sector improves. However, until the statistical institute releases its revisions to the data on the economy it will be quite difficult to gauge the true direction of the Argentine economy. That said, all indicators point to better times ahead for the country in the next several years.”
(Market News Provided by FXstreet)