Moody’s rating agency projected a 1.5% drop in Argentina’s economy by 2023

Moody’s Risk rating agency projected a 1.5 percent drop in Argentina’s economy yesterday, Tuesday, by 2023 due to the severe drought the South American country is going through, the agency said in a press release.

The agency forecasted a further contraction of Argentina’s Gross Domestic Product (GDP) after its previous estimate of 0.5 percent growth for the current year.

“Moody’s Investors Service has changed its projections for Argentina’s real GDP to a contraction of 1.5 percent in 2023 from a previously forecast contraction of 0.5 percent and a rebound to 1.8 percent in 2024 from 1.5 percent previously,” the statement reflected.

“The outlook for agricultural production has deteriorated further in recent weeks, suggesting that agricultural output will register an even larger impact than in the 2018 drought,” the text added.

The new estimate on the variation of the Argentine GDP made by Moody’s is below the 0.2 percent growth projection released Tuesday by the International Monetary Fund (IMF).

The multilateral organization also projected an inflation rate of 98.6 percent for the current year.

The Government of Argentina maintains in the 2023 Budget an estimated economic growth of 2 percent and an inflation of 60 percent.