BUENOS AIRES (Reuters) -Argentina’s economic activity growth likely slowed for a second consecutive month in August, a Reuters poll of analysts showed on Tuesday.
According to the median forecast from 15 analysts, activity expanded 2.5% year-on-year in the eighth month of the year, following increases of 6.1% in June and 2.9% in July, as reported by Argentina’s INDEC statistics agency.
The average forecast for growth in economic activity was 2.8%.
According to the Fundación Libertad y Progreso, a think tank, high interest rates and reserve requirements are hindering credit growth, affecting economic performance.
INDEC’s Monthly Economic Activity Estimator (EMAE) is a closely-watched economic indicator in Argentina, providing a preview for broader economic growth trends.
Analysts’ projections for August growth varied widely, from 1.2% to 5.5%. The economic outlook for coming months is uncertain, tied to legislative elections on October 26.
President Javier Milei’s party hopes to gain more seats in Congress to be able to pursue market-friendly economic reforms.
“It is increasingly urgent to send the signal that the country will begin moving toward structural reforms so that the economy can grow in a sustained way,” Fundación Libertad y Progreso said.
Advisory firm Orlando Ferreres & Asociados (OJF) highlighted increased uncertainty due to currency tensions and political setbacks for the government. The firm added that while U.S. support has temporarily eased market volatility, the economic trajectory now appears linked to the election results.
INDEC is scheduled to release official August EMAE data on Wednesday afternoon.
(Reporting by Hernan Nessi, Editing by William Maclean)
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