Argentina’s economy contracts for two consecutive years, by 2.1% in 2019 after 2.5% in 2018
Argentina’s economy, hit by the recession, contracted by 2.1% in 2019, the national statistics institute said on Friday. The institute said the economy contracted 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 has exceeded 50% in the past year. Already in 2018, the GDP had fallen by 2.5%.
The news comes at a time when Argentina is trying to renegotiate nearly $ 200 billion in debt in order to avoid a damaging default.
The International Monetary Fund ended a week-long mission to Argentina on Wednesday, after which it declared Argentina’s total debt of US $ 311 billion, representing over 90% of its GDP, was “unsustainable. “.
Center-left president Alberto Fernandez said after taking over from market friend Mauricio Macri that Argentina would not be able to pay its debts if it did not return to growth.
In December, the sectors most affected were financial services, which fell almost 10% from the previous year, and construction, which fell 8%. In contrast, the fishing industry grew by 13.5%.