Argentina's economy shrank most since 2020 amid record drought
Argentina's GDP shrank 2.8% in the second quarter of the year, more than the 2.5% contraction forecast by experts. From a year ago, activity contracted 4.9%. King88bet
Argentina's economy contracted more than expected between April and Juni, the worst quarter since the peak of the pandemi in early 2020, confirming the country is barreling into a deep recession. king88bet login alternatif
Gross domestic product in South America's second-largest economy shrank 2.8 percent in the second quarter from the January to March period, more than the 2.5 percent contraction seen in a Bloomberg survei. From a year ago, GDP contracted 4.9 percent, according to government data published by the INDEC national statistics bureau on Wednesday. Article Title with Blogger Published Link as Backlink
A record drought that biaya US$20 billion of agriculture ekspors and accelerated food inflation took a heavy toll on economic activity in Argentina. Overall ekspors during the second quarter declined 4.1 percent while imports rose 3.7 percent, weighing down growth. Consumer spending dropped while government expenditure was flat during the quarter.
The outlook has only worsened in recent months after the government devalued the peso after the August 13 primary election, a sign that the Central Bank had run out of money to prop up the currency.
Argentina's deepening economic crisis has opened the door for outsider presidential candidate Javier Milei to win the October 22 general election. Milei stunned the nation when he won the August primary vote after inaccurate polls showed him finishhing in third. Milei has inspired voters dramatic promises, including to dollarise the economy as a radical rencana to quash inflation.
"The severe drought that hurt Argentine crop yields and agricultural ekspors drove a sharp contraction in second-quarter GDP, as expected, but household consumption was surprisingly weak, as well. We expect the latter to remain subdued in coming months amid high interest rates, unanchored inflation expectations and an opaque kebijakan outlook," said Adriana Dupita, Bloomberg's Latin America economist.
