Argentina’s economy will contract again in 2020. Severe macroeconomic imbalances including persistently high inflation, a high fiscal deficit and unsustainably high public debt make the economy poorly equipped to deal with a large negative shock. Rising unemployment, lower real wages and an increasing number of corporate bankruptcies sustain the decline. Growth of real GDP should rebound to 4.0% in 2021, and will gradually fall to reach an annual average of around 2.3% per year in 2027.
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