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Analysts see Argentina 2021 inflation at 46%, improvement over previous forecast: central bank

BUENOS AIRES, Apr 9 (Reuters) – Argentina is expected to record 46% inflation in 2021, below the estimate of 48.1% predicted in the central bank’s previous survey, the monetary authority reported on Friday.

According to the Market Expectations Survey (REM) carried out by the central bank between March 29 and 31 among 41 participants, the inflation rate in March reached 3.9%.

Regarding the Gross Domestic Product (GDP) of the South American country, specialists consulted by the central bank said they expect an expansion of 6.7% this year, above the previous forecast of 6.2%.

The third-largest economy in the region has suffered from high inflation for several years and has been in recession for three years, which was deepened in 2020 by the COVID-19 pandemic. [L1N2LI008]

“In the last quarter of 2020, a recovery began. We now have nine consecutive months of positive growth in economic activity and economic indicators are improving,” Economy Minister Martín Guzmán said on Friday at a virtual meeting of the Department of the Western Hemisphere of the International Monetary Fund (IMF).

REM participants foresee that the average nominal exchange rate in Argentina in December will be 115 pesos per dollar, from the 118.6 pesos per dollar estimated in the previous survey.

(Reporting by Eliana Raszewski)

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