Argentina’s Worst Drought in Memory Lands New Blow to Economy
- Itau says economy will shrink 3% as output forecasts get axed
- Driest spell in 60 years or more may bankrupt Pampas farmers
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Argentina’s looming recession will be deeper than first expected as one of the worst droughts in recent memory ravages crucial farm exports.
Gross domestic product in South America’s second-largest economy, which desperately needs US dollars, will shrink 3% this year, worse than the previous forecast for a 1.5% contraction. That’s according to new forecasts by Itau Unibanco Holding SA and Buenos Aires-based consulting firm EconViews.