BUENOS AIRES -(Dow Jones)- Argentina’s economy posted another month of stellar growth in August, handily beating expectations.
The August Emae economic-activity index, a proxy for the nation’s gross domestic product, jumped 8.6% on the year and was up 0.6% on the month, national statistics agency Indec reported Tuesday.
Economists polled by Dow Jones Newswires had expected the government to report 7.6% year-on-year growth due to a moderate slowdown in industrial production in August.
The government also revised data for earlier months sharply higher, putting June’s growth at 9.4%, May’s growth at 9.3% and April’s growth at 8.8%, each up more than a full percentage point from earlier estimates.
Argentina’s economy is expanding at a gangbuster pace as heavy government spending, rising farm output, a consumer boom and manufacturing continue to stoke growth.
While expanding quickly, the pace is down somewhat from the blistering growth of 9.2% seen in 2010 and the wide expansion seen during the first half of the year in Latin America’s third-largest economy.
The government is predicting 8.2% GDP growth this year, and the 2012 budget submitted to Congress puts growth at a respectable 5.1% next year.
However, there are signs that manufacturing is cooling somewhat as growth and demand for imports slow from Argentina’s top trade partner, Brazil.
-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@ dowjones.com
(END) Dow Jones Newswires
10-18-111543ET
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Source: Dow Jones