Indicators

Argentina Economy Shrank More Than Expected, Suffering Record Drought

  • Economic activity in April fell 1.9%; dropped 4.2% vs year ago
  • Argentina economy expected to enter recession in third quarter
Photographer: Juan Mabaromata/AFP/Getty Images
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Argentina’s economy contracted more than expected in April as a record drought took its toll on trade, a sign that the economy is likely to enter recession later this year.

Economic activity fell 1.9% in April from a month earlier, more than median estimate for a 1.2% decrease. The economy shrank 4.2% from a year ago, according to government data published Friday. The year-on-year drop exceeded all forecasts of economists surveyed by Bloomberg.