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Argentina's recession would be deeper this year: Central Bank

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The survey carried out monthly by the monetary authority estimated a growth of the South American economy of 2% in 2020

Buenos Aires street, Argentina

Reuters | Eliana Raszewski

Argentina's Gross Domestic Product (GDP) would contract 1.5% in 2019 , according to analysts who participated in the July Survey of Market Expectations (REM, in Spanish) released on Friday by the central bank (BCRA), from a previous forecast of a 1.4% decline in activity.

Leer en español: Recesión sería más profunda en Argentina este año: Banco Central

The survey carried out monthly by the monetary authority estimated a 2% growth in the South American economy in 2020, from the 2.2% increase projected in the previous month's survey.

On the other hand, the participants left their annual inflation expectations for 2019 unchanged at 40% and raised their projection to 28% from 27% for next year.

The report that brings together the results of 51 participants, including consultants, financial institutions and analysts, reflected that respondents project that the exchange rate will fall to 50 pesos per dollar in December, from a previous estimate of 50.2 per dollar.

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Analysts consulted estimated that the interest rate of the Liquidity Letters (Leliq) by the end of 2019 will be 53%, two percentage points less than in the June survey.

 

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