Argentina Watch: Economic activity, Santander Brasil comments

Argentina’s agricultural sector helped to partly offset a drop in economic activity in February.

Overall activity contracted 4.8% year-on-year, according to data from statistics agency Indec. Activity has been contracting since May 2018.

In February, all sectors of the economy registered negative readings except the key agricultural sector – which expanded 5.9% after growing 5.4% a year earlier – and education and social services/health.

Intermediation activity in the financial sector dropped 10.1%.

On a month-on-month basis, overall activity grew 0.2% in February, marking the third consecutive monthly expansion. 

Argentina entered a technical recession in 3Q18 and the economy - hampered by high inflation and interest rates - is expected to shrink this year. Some market observers expect thin green shoots of recovery in H2.

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Argentina has the most potential out of all countries in South America, state news agency Télam reported Santander Brasil executive president Sergio Rial as saying.

Rial said an adverse economic situation opens up opportunities for those who act with caution.

Rial did not say whether Santander was looking to acquire assets in Argentina, according to the report, where the Spanish banking giant operates under the name Santander Río.