By Shane Romig
BUENOS AIRES--Argentina's gross domestic product proxy for May dipped slightly on the year but edged higher on the
month as the economy continued to be mired in recession.
In May, the indicator fell 0.2% on the year, but climbed 0.5% on the month, the national statistics agency Indec
reported Thursday.
The indicator, known by its Spanish acronym Emae, includes most of the components used to calculate quarterly GDP.
Argentina's economy slid into recession this year due to weak growth in top trade partner Brazil, double-digit
inflation that has hit consumer spending and foreign-currency shortages that make it harder for companies to import
materials and equipment.
A 20% devaluation of the peso against the U.S. dollar in January and increasing benchmark interest rates to almost
30% has also slowed growth, though those measures were successful in stopping a run on the central bank's depleted
foreign-currency reserves.
GDP contracted 0.8% during the three month period ending March 31, marking the second consecutive quarter-on-
quarter contraction in the economy. GDP shrank 0.5% in the fourth quarter of last year.
Alberto Messer contributed to this article
Write to Shane Romig at shane.romig@wsj.com
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