Indicators

Not Even a World Cup Win Can Save Argentina’s Economy From Decline

  • Economic activity in December shrank 1% m/m; -1.2% y/y
  • Argentine economy poised to enter recession in early 2023
Argentinians celebrate winning the Qatar 2022 World Cup in Buenos Aires, on Dec. 18, 2022.

Photographer: Tomas Cuesta/AFP/Getty Images 

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Argentina’s economy contracted more than expected in December even after the country won its much-celebrated third World Cup title, confirming the view that the nation will likely enter recession later this year.

Economic activity declined 1% in December from November, the fourth straight month of declines, according to government data published Thursday. From a year ago, activity dropped 1.2%, worse than economists’ expectations for 0.9% growth and the first negative annual print since early 2021.