Argentina’s Epic Drought Is Pushing Economic Crisis to New Extremes
- Exports poised to plummet with almost half the soy crop ruined
- Dollar shortage putting pressure on peso, fueling inflation
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Argentina’s record drought is worsening inflation and sending the peso to new lows, undermining the ruling party ahead of October presidential elections that could portend a dramatic swing in the country’s political direction.
The International Monetary Fund slashed its growth outlook for South America’s second-largest economy Tuesday as private analysts warn the drought will cause a deep recession. Millions of acres of corn, wheat and soy — Argentina’s biggest exports and a key driver of jobs and tax revenue — will be ruined this year, sapping some $19 billion of inflows, according to one estimate.