Argentina’s central bank survey reveals that analysts have adjusted their projections for both monthly and yearly inflation rates, signalling a marginally more optimistic outlook amid challenging economic conditions.
According to the central bank poll conducted in late October, analysts now expect Argentina’s annual inflation rate to reach 120.0% by the end of the year. This represents a decrease of 3.6 percentage points from previous estimates, as reported by Reuters. Month-over-month inflation for October is also anticipated to be slightly lower than previously expected, projected at 3.0%, down from an earlier forecast of 3.4%. Looking ahead, November inflation is predicted to rise by 2.9% from October’s figures.
In addition to inflation, the survey provided an updated forecast for Argentina’s economic performance. The latest data suggests a 3.6% contraction in the country’s real GDP for 2024, marking a minor improvement over earlier predictions. This forecast revision reflects an observed uptick in economic activity, particularly starting in the third quarter, despite a significant decline in the first half of the year.
The survey, conducted from October 27 to 31, gathered insights from 43 economists and analysts, highlighting cautious optimism within Argentina’s economic landscape.
As Argentina continues to face one of the world’s highest inflation rates, these adjusted forecasts offer a glimmer of stability, though challenges remain for the South American economy in the months ahead.
