This Tuesday, the World Bank (WB) considered that the Argentine economy will fall 3.5% this year as a result of the economic crisis it is going through. The new forecast, which is part of the update of global estimates, implies a drop of more than 6 points from the previous calculation, when it was expected that local GDP would grow 2.7%.
According to the organization’s latest World Economic Outlook report, the Argentine economy, which was already suffering from deep structural problems, will suffer a considerable contraction in 2024. However, the report also points out a possible recovery for 2025, with a projected growth of 5% , as long as effective policies are implemented to address economic imbalances and control inflation.
“The forecast has been updated downwards basically due to the marked downward revision of Argentina, which we expect to contract this year before resuming growth next year,” indicates the WB report. He adds: “Argentina has experienced significant increases in monthly inflation at the beginning of 2024 and is now showing signs of easing, both in inflation and the inflationary outlook.”
The WB agrees that in Argentina “monetary and fiscal steps are necessary to address chronic imbalances,” which will cause a “temporary contraction.” The optimistic report for 2025: “Economic activity is expected to consolidate in 2025 as macroeconomic imbalances are addressed, new market distortions are eliminated and inflation is controlled,” they point out.
#Argentina
