LatinNews Daily - 11 June 2020

* The Organisation for Economic Co-operation and Development (OECD) has released its latest Economic Outlook report, according to which Argentina’s economy could contract by more than 10% this year. Considering two possible scenarios, one in which the peak of the coronavirus (Covid-19) outbreak has passed, and another in which the epidemic sees a second surge with an accompanying dip in economy activity (the ‘double-hit scenario’), the OECD projects that Argentina’s GDP will contract by around 8.3% or 10.1%. The OECD notes that Argentina’s economy was already in recession and facing uncertainty over the restructuring of its public debt before the pandemic hit. While it highlights the “bold and timely” measures taken by the Argentine government to contain the spread of the virus, the OECD notes the impact of these measures on production capacity and domestic demand, and expects economic recovery to be slow, citing “severe macro-economic imbalances” such as persistently high inflation, a high fiscal deficit, and rising public debt (expected to reach 83% of GDP by the end of 2020).  

End of preview - This article contains approximately 172 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial