JPMorgan Sees Argentina Economy Facing Prospect of Hard Landing
- JPM economists revise down 2023 GDP outlook to -1.7% vs. -0.5%
- Crop drought, inflation pressures seen affecting activity
Corn damaged at a drought-affected farm in San Jose de la Esquina, Argentina, on Monday, Jan. 16, 2023.
Photographer: Natalia Favre/BloombergThis article is for subscribers only.
Argentina’s economy is facing the prospect of a “hard landing” scenario this year as a crop drought deepens expectations of a larger downturn, according to a note published Monday by analysts at JPMorgan Chase & Co.
South America’s second-largest economy is forecast to contract 1.7% this year versus the bank’s previous forecast of a 0.5% decline. That’s one of the most bearish outlooks for Argentina. Economists surveyed by the central bank in January saw 0.5% growth this year while the government penciled 2% growth into its annual budget.