Argentina's economy slows down more than expected

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Friday, November 25, 2016

Argentina's economy continues to disappoint, as the economic activity indicator contracted 3.7% year-on-year in September.

September was the seventh consecutive month in contraction mode for the indicator, which shrunk 2.1% in August, according to the statistics agency Indec.

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The drop was much larger than expected by analysts such as Camilo Tiscornia of CyT Asesores, which had forecast a contraction of 0.6%. The consultancy cut its growth projection for 2017 to an expansion of 3.5% from 4.0%.

In seasonally adjusted terms, economic activity in September fell 0.8% over the previous month.

Last month, analysts surveyed by the central bank forecast a GDP contraction of 1.7% in 2016 and growth of 3.2% in 2017.

Argentina's central bank has cut its key rate three times this month. It now stands at 25.25%.