Argentina nears recession after output shrinks


Economic activity declined 5.5% from a year ago, the deepest contraction since 2020 and exceeding the 3.4% median forecast of economists surveyed by Bloomberg. — Bloomberg

BUENOS AIRES: Argentina’s economy contracted more than expected in May, taking the economy to the brink of its sixth recession in a decade.

Economic activity declined 5.5% from a year ago, the deepest contraction since 2020 and exceeding the 3.4% median forecast of economists surveyed by Bloomberg.

The economy shrank 0.1% in May from a month earlier, according to government data published.

A severe drought is hitting the farms that produce most of the nation’s exports, adding to the disruption caused by out-of-control inflation.

Argentina is just a month away from a primary vote that will take place on Aug 13. Thta will then be followed by an October general election.

The electoral calendar is also adding uncertainty the economic outlook, as investors wait to see whether the government will ease price controls and byzantine currency controls after the vote.

Economists surveyed by Argentina’s central bank forecast that gross domestic product will shrink 3% this year, followed by another decline in 2024. — Bloomberg

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Business News

Asia Digital Engineering eyes US market with FAA approval in sigh - CEO Mahesh
China's services activity expansion eases in Nov, Caixin PMI shows
Australia's Q3 GDP growth disappoints hopes for a rebound
Ringgit remains lower against US$ on jitters over South Korean turmoil
FBM KLCI rises after crossing key resistance level
Trading ideas: Mah Sing, Solarvest, Binastra, MMAG, Feytech, JFTech, Cloudpoint, T7, Malton, PJBumi, TMK, VS Industry, Magni-Tech
Nasdaq and S&P 500 post record closing highs
CLMT’s Elmina property acquisition a positive
Airfares surge in Vietnam ahead of crucial Lunar New Year holiday
Cloudpoint in RM34mil contract win

Others Also Read