Argentina's economy rebounds by 10.3% last year - highest growth rate since 1964

[peppertree]

Argentina's INDEC statistics bureau reported that the nation's economy grew by 10.3% in 2021 - a sharp rebound from a 9.9% fall in 2020, and the highest annual figure since 1964.

The nation's economy, the third-largest in Latin America, grew 0.9% in December and 9.8% from a year earlier - putting GDP up 4.9% on pre-pandemic levels (February 2020).

Argentine GDP, however, remained 2.8% below February 2018 levels - before a foreign debt bubble under former President Mauricio Macri burst, leading to a two-year "Macrisis."

Outperforming projections

World Bank Managing Director of Operations Axel van Trotsenburg congratulated Economy Minister Martín Guzmán for Argentina's recovery - which outperformed initial projections of around 4.5% growth.

Growth in 2021 was led by recreational and other services (29.3%) and construction (27.5%) - two of the hardest-hit sectors by crowding restrictions in effect during much of 2020.

Strong growth was also seen in tourism (21.5%), fisheries (16.7%), and manufacturing (15.7%) - with factories now running at their best rate since 2017.

Fixed investment in 2021 rose by 22.2% according to Orlando Ferreres, a top local macroeconomy consultant - to its highest level since 2018.

The recovery stoked already high inflation, with consumer prices up 51%. Real wages, however, edged up 1.7% - after a 5-year decline of 22% - and unemployment eased to 7.9%, from 11.4% a year earlier.

Exports jumped by 42% to $78 billion last year, on both higher quantities (up 13%) and prices. And while the recovery fueled a 49% higher import bill (on 30% higher volume), the nation's critical trade surplus rose to $14.75 billion.

Macri-era debt looms large

Central Bank reserves did not recover, however, as much of the trade surplus is now needed to service Argentina's $190 billion public foreign debt, which had doubled during the 2015-19 Macri administration.

This includes $40 billion still owed to the IMF on a record, $45 billion bailout granted to Macri ahead of his failed, 2019 campaign - a bailout reportedly granted at the insistence of former President Donald Trump.

Argentina and the IMF last month came to a preliminary agreement on refinancing the debt - some 28% of the IMF's outstanding loans, and the largest by far.

The agreement, which still requires Argentine congressional and IMF board approval, was lauded by economist Joseph Stiglitz as "not insisting, as (the IMF) usually does, on austerity - instead providing Argentina with room to continue its economic recovery."

At: https://www-baenegocios-com.translate.goog/economia/El-PBI-recupero-casi-todo-lo-perdido-durante-el-2020--20220223-0057.html?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp

Opening soon: The New Brighton Bar in downtown Buenos Aires announces its reopening in November after closing in March 2020, early in the ongoing pandemic.

The café - once visited by the Prince of Wales in 1925 - is one of numerous such establishments reopened during the past few months in Buenos Aires and other Argentine cities.

[Judi Lynn]

1. It's so good seeing these impressive gains, so unexpected, after Macri!

Fernández surely new what he was doing when he appointed Martín Guzmán as his Economy Minister. It has been so interesting seeing the direction taken from the very first of their progressive, people-focused, rather than kleptomaniacal administration.

(They did it wihout the aid of a brujo, or an astrologer, etc., unlike Macri, too. They haven't even assassinated, blackmailed, spied upon, or coerced political enemies.)







Best wishes to Fernández for successful, thoughtful guidance of the Argentine democracy.



I drifted away to examine the historic Bristol Bar, after reading the previous Duke of Wales was a patron!

Images of the soon-to-reopen New Bristol Bar:
https://tinyurl.com/2z3a845f

That ceiling is so unusual! I read in the beginning of the building's new life as a restaurant, it was converted from an upscale men's tailor's building.

Had to look at more photos of the place, then photos of the food, then wandered around google images soaking in pictures of other Buenos Aires restaurants and the cuisine. It was fascinating! They even have some great Mexican restaurants! How much fun! That would be a town which could keep people exploring great food forever!

Thanks for sharing the newest on Argentina's progress, peppertree. So much positive change. Wonderful!

[peppertree]

2. Thank you for the good thoughts, Judi. Here's hoping you can visit Buenos Aires someday.

It's interesting - in a melancholy, stuck-in-the '50s-and-'60s way.

Not entirely, of course. But the collapse after 1980 really shows in the relative lack of gleaming, post-modern skyscrapers like the kind one sees in Manhattan and the great Asian cities - plus Frankfurt and London, which have a good number of those too (somewhat to their detriment in London's case, as London is so regal and could do without all those monstrosities that have popped up downtown).

But Buenos Aires isn't a rich city, and where there's new construction it's usually on a small/medium scale: eight/twelve-story apartment buildings built between older ones - that sort of thing. It just pains me when I see old French-style townhouses demolished.

Sometimes, though, you hear of vintage architecture being restored and repurposed - and in locations where it could've just as easily been demolished. Always nice to hear.

The latest such example is the former Presidential Carriage House (built in 1900), which was sold off a few years ago and recently converted into a gourmet market hall.

Enjoy!

[Judi Lynn]

3. Wow, just "walked" through the video, it was interesting!

The people who designed the interior made it a real experience, so much variety everywhere. By putting so much effort into the use of space, they've created an experience making it appear like an entire city in there! Totally enjoyable. They, and the public, must have been so delighted when it was completed and open for business. It would be very easy to end up spending far more time in the building than you had intended at the start.

Returned to the video and watched it nearly to the end. It's easy to see people could use that building as a fitness center, too! Lots to see, and you get a workout in the process.

Thanks for sharing the Carriage House. It looks like something to catch, for sure! The Churros! Holy Moly. Looks as if they are totally popular, by all means. I looked Churros up and saw that they are enjoyed all over the world!