Argentina to Go Deeper Into Recession, Central Bank Survey Says

  • Economists in central bank survey see 2018 GDP shrinking 1.9%
  • Forecast of 40% inflation, peso to be 41.9/USD by end of 2018

People wait in line outside of a currency exchange house in Buenos Aires on Aug. 30. 

Photographer: Erica Canepa/Bloomberg
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Argentina’s economic outlook deteriorated significantly in August amid a renewed currency crisis, with economists surveyed by the central bank forecasting a deepening recession, weaker currency and higher inflation.

Economists in the monthly survey publishedBloomberg Terminal Tuesday see South America’s second-largest economy contracting 1.9 percent in 2018, compared with the previous forecast of a 0.3 percent contraction. Inflation is expected to end the year at 40.3 percent, up from the 31.8 percent prediction in July.