Argentina economy expands by 2.9pc in 2017


FE Team | Published: January 20, 2018 12:28:52 | Updated: January 22, 2018 11:11:37


Representational image (Collected)

Argentina's economy expanded by 2.9 per cent in 2017, and grew 0.7 per cent in the fourth quarter from the third quarter, a Treasury Ministry source said.

The gross domestic product (GDP) of the upper-middle income economic country bounced back in 2017 from a 2.2 per cent contraction the prior year.

The economy grew 4.2 per cent in the third quarter compared with the third quarter of 2016 and expanded 2.5 per cent in the first nine months of the year.

The annual growth figure means the Latin American country will not have to make a coupon payment on growth-linked bonds known as GDP warrants this year, the source said.

Growth of more than 3.0 per cent would have triggered a payment, reports Reuters.

Payments on the warrants, issued as part of debt exchanges in 2005 and 2010 following Argentina’s 2001 default, could have totalled as much as $3 billion.

The third largest economy of Latin America could still make payments in future years if growth exceeds 3.0 per cent.

The government’s 2018 budget estimates growth of 3.5 per cent this year.

Argentina’s government statistics agency is expected to publish fourth quarter GDP data on March 21.

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