Daily Management Review

Argentina's economy shrinks by 1.7% in Q3


The economy of Argentina in the III quarter fell by 1.7% compared with the same period last year, according to the national statistical agency Indec.

The result turned out to be slightly better than the forecast of analysts polled by Reuters, who expected a decline in GDP of about 2% in annual terms.

Since the beginning of 2019, Latin America's third largest economy has shrunk by 2.5%.

The decline in the III quarter followed a short-term economic recovery, which showed a growth of 0.6% in the II quarter for the first time since the beginning of 2018.

On Tuesday, the government sent Congress a bill on economic measures proposing to increase taxes on agricultural exports and tax foreign assets abroad.

The government is seeking funds to support social spending, faced with annual inflation close to 55%.

In the third quarter, the Argentine government introduced capital controls to stop the decline in foreign exchange reserves and the fall of the peso.

Amid a currency crisis, the central bank spent billions of foreign reserves to stabilize the peso.

source: reuters.com