Economy

Argentina will have two consecutive years of GDP decline

Survey of the Argentine Central Bank offer a bleak picture of the economy’s future in Argentina

Mauricio Macri, current president of Argentina
Mauricio Macri, current president of Argentina and an underdog for the general elections of this year.
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  • General inflation in Argentina will reach 55% in 2019 and 38% in 2020;
  • Argentina’s gross domestic product will contract -2.5% this year and -1.1% in 2020.

Following the Market Expectations poll that took place during the last few days of August (28th – 30th), the Argentine Central Bank (BCRA) presented this Tuesday (September 3rd) a bleak forecast for its national economy in the next two years.

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According to the survey, general inflation will rise to 55% (15 points above the previous polls) this year and will remain at 38% (10 points above the previous survey) in 2020, painting a worse picture of the current state of Argentina’s economy after the presidential primaries on August 11th, whose results shook the political landscape of the country. 

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Projections for the country’s gross domestic product (GDP) have also suffered in the poll presented by the BCRA. Analysts expect the GDP to drop -2.5% in 2019 and -1.1% in 2020. This is all the more demoralizing, since previous surveys suggested a growth of 2% for 2020. President Macri is facing a tough month ahead, as he prepares as an underdog for the general elections, all the while struggling to keep the country’s economy afloat.