Argentina experiences first economic contraction in nearly three years

Argentina’s economy contracted by 4.9% in the second quarter of 2023 compared to the same period last year, according to the country’s statistics agency. This figure slightly missed analysts’ forecast of a 4.8% contraction and represents the first break in growth that the country has experienced in years. The agricultural sector was hit the hardest, with a significant 40.2% decrease compared to the previous year. This decline comes as Argentina tries to salvage a $44 billion deal with the International Monetary Fund (IMF) amidst ongoing issues such as the devaluation of the peso, negative central bank reserves, and the impact of drought on the farming industry. The country’s economic challenges continue to pose significant obstacles to its recovery and stability.