The Argentine economy registered a slight contraction in October despite the presidential election cycle, which provoked uncertainty about policies, and another wave of currency sell-offs in parallel markets.
According to government data, economic activity in October decreased by 0.1% compared to the previous month, less than the average forecast of a 0.6% decline during the month, and on an annualized basis, the Argentine economy grew by 0.6%.
Separately, official data showed that the unemployment rate in the official labor market during the third quarter of this year, fell to 5.7%, the lowest level since at least 2003, according to “Bloomberg”.
Coinciding with the presidential elections in October, the parallel exchange rate in Argentina increased from 804 pesos to the dollar to 1035 pesos to the dollar in three weeks before reducing its losses, and this led to an increase in inflation to currently exceed an annual rate of 160%, the highest level since Argentina emerged from hyperinflation in the early nineties.
