Argentina’s Gross Domestic Product (GDP) expanded by 1.3 percent in the first quarter of 2023, driven primarily by increased private consumption and imports, according to the National Institute of Statistics and Censuses (INDEC).
During the first three months of the year, private consumption grew by 6 percent, public consumption by 1.6 percent, and imports by 2.9 percent.
However, exports declined by 6 percent, and investment (gross fixed capital formation) decreased by 0.6 percent.
The sectors that experienced notable growth included mining and quarrying (11.9 percent), hotels and restaurants (8.5 percent), private households with domestic service (8.2 percent), and electricity, gas, and water (6.5 percent).
Fishing (4.5 percent), manufacturing industry (2.8 percent), and commerce (2.7 percent) also saw positive variations.
On the other hand, agriculture, livestock, hunting, and forestry contracted by 11.9 percent due to a severe drought, resulting in estimated export losses of over US$15 billion.
Financial intermediation also saw a decline of 3.4 percent, while taxes net of subsidies dropped by 0.3 percent.
In addition to the year-on-year growth, Argentina’s GDP increased by 0.7 percent compared to the previous quarter of 2022, as per INDEC data.
The World Bank’s latest projections indicate that Argentina’s economy is expected to contract by 2 percent in 2023 due to the significant drought experienced in the country during the initial months of the year.