4.7 C
New York
Tuesday, December 7, 2021

Argentina sees 2019 economic rebound after 1 percent 2018 contraction

Argentina sees 2019 economic rebound after 1 percent 2018 contraction© Reuters. Argentine Treasury Minister Dujovne speaks during a news conference in Buenos Aires

By Eliana Raszewski

BUENOS AIRES (Reuters) – Argentina’s gross domestic product is expected to contract 1 percent in 2018 but grow by at least 1.5 percent next year, Treasury Minister Nicolas Dujovne told reporters on Monday.

In a conference with international journalists, Dujovne said the government was maintaining its fiscal deficit target of 2.7 percent of GDP for 2018. The country also expects a current account deficit of 3 percent of GDP in 2019, he said.

Argentina has asked the International Monetary Fund (IMF) to release $3 billion of previously agreed $50 billion standby financing in September, Dujovne said.

Dujovne also said Argentina asked the IMF to remove the repurchase of non-transferable treasury notes as a condition for release of the funds, a request he said he expected the fund to grant.

“That plan for the repurchase of non-transferable notes generated uncertainty” in the market, Dujovne said.

A run on the peso, exacerbated by strife in emerging markets globally, caused the value of the currency to plummet almost 40 percent this year. The currency closed last week at an all-time low of 30.55 per dollar.

Economic activity in June was down 6.7 percent year-over-year, the worst since July 2009, and the latest indication that the country is heading toward a recession.

A drought parched the country’s agriculture sector, costing a total of 2 percentage points of GDP this year, Dujovne said.

In recent weeks, the previous administration has been accused of accepting bribes for public works contracts.

“The corruption scandal will generate difficulties in the private sector, which will affect growth,” Dujovne said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles