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Montevideo, November 29th 2020 - 13:31 UTC

 

 

Argentina economy shrinks two years running, 2.1% in 2019 after 2.5% in 2018

Saturday, February 22nd 2020 - 10:08 UTC
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Argentina has been in recession since mid-2018 as poverty and unemployment are on the rise and inflation surpassed 50% over the last year Argentina has been in recession since mid-2018 as poverty and unemployment are on the rise and inflation surpassed 50% over the last year

Recession-hit Argentina's economy shrank by 2.1% in 2019, the state statistics institute said on Friday. The institute said the economy contracted by 0.3% in December compared to the same period in 2018.

Argentina has been in recession since mid-2018 as poverty and unemployment are on the rise and inflation surpassed 50 percent over the last year. Already in 2018, GDP had dropped by 2.5%.

The news comes at a time when Argentina is attempting to renegotiate almost US$ 200 billion in debt in order to stave off a damaging default.

The International Monetary Fund ended a week-long mission to Argentina on Wednesday, after which it said Argentina's total debt of US$311 billion, worth more than 90% of its GDP, was “unsustainable.”

Center-left President Alberto Fernandez said after taking over from market-friendly Mauricio Macri in December that Argentina would not be able to pay its debts if it did not return to growth.

In December, the hardest-hit sectors were financial services, which shrank almost 10% compared to the previous year, and construction, which was down by eight percent. On the other hand, the fishing industry grew by 13.5%.

Categories: Economy, Politics, Argentina.

Top Comments

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  • Enrique Massot

    “...market-friendly Mauricio Macri?”

    What's Mauricio Macri market friendliness when the country's economy shrinks 2 per cent for two consecutive years?

    What is market-friendly about Argentina's recession, poverty and unemployment, with inflation surpassing 50 percent over the last year?...

    ...other than helping friends and family members' business deals, carry trade and capital flight?

    Feb 23rd, 2020 - 04:23 am 0
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