In Perennial Economic Crisis, Argentina Faces Worst Year Yet

Argentina was facing a third year of recession in 2020 even before the coronavirus hit. Now with the pandemic’s economic shock, some analysts foresee a record contraction in the crisis-prone country, Bloomberg News reported. One of the most pessimistic estimates is from Marcos Buscaglia, co-founder of Buenos Aires-based consulting firm Alberdi Partners and former chief Latin America economist at Bank of America Corp, who sees activity shrinking 13%. Yet, forecasts for a near double-digit decline aren’t outliers. The OECD forecasts Argentina’s economy will shrink 10% this year and Goldman Sachs Group Inc.’s Tiago Severo sees a 9.3% drop. A year-end result in line with those estimates would rival the economy’s record plunge of 2002, when gross domestic product fell 10.8%, according to data compiled by University of Buenos Aires academics Ariel Coremberg, Daniel Heymann and Pablo Gerchunoff. Read more