Argentina’s GDP expanded by a stronger-than-expected 2.6% q/q in Q1 and, while the recent third virus wave has dragged down activity in Q2, we are sticking with our above-consensus forecast of 8% growth over 2021 as a whole. One implication is that the government looks set to hit its main fiscal target for this year, which may embolden it to keep a hard-line stance in negotiations with the IMF.
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