Argentina´s Economic Outlook 1Q 2015

Economic activity has remained stagnant in the first two months of the year and grew 1.4% y/y in March; but it is not likely to improve further in the near term. However, consumer confidence has been on the rise and retail sales grew in January, February  and March by 1.5%,2.8% and 2.2%, respectively.

While the exchange rate remained quite stable and depreciated only 1% per month in 1Q, the parallel exchange rate dropped and the spread between the official and the parallel exchange rates reached 40%, a minimum in the last eleven months.