(Bloomberg) -- Argentina's economy continued to recover slowly from its historic Covid-19 plunge earlier this year, posting the sixth straight month of growth.
Economic activity rose 1.9% in October, but declined 7.4% from the same month a year ago, according to government data published Wednesday. Growth slowed from the previous month, which was revised up to 2.1% on a monthly basis. In October, all categories except financial intermediation registered annual declines, though construction and manufacturing have recovered close to pre-pandemic levels.
Activity in Argentina has recently been affected by speculation that President Alberto Fernandez was going to devalue the peso. Currency controls implemented in September caused the gap between the official and parallel exchange rates to widen significantly, but have since narrowed due partly to some more orthodox policies. Fernandez has denied that a devaluation is in the cards.
ARGENTINA REACT: October Advance Points to Positive 4Q Growth
Argentina's economy is expected to contract around 11% this year, which would be the worst one-year decline on record. Inflation, already elevated, is expected to accelerate to 50% next year and unemployment remains at double digits. Fernandez's government intends to outline its broad economic vision in a new program with the International Monetary Fund still under negotiation.
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