Argentina’s economy contracted more than expected in May, taking the economy to the brink of its sixth recession in a decade.
(Bloomberg) — 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 Tuesday.
Read More: Six Signs That Argentina’s Economy Is Entering a Recession
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 a month away from a primary vote that will take place on Aug. 13, 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.
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