The World Bank forecasts a 2% drop for the Argentine economy in 2023

The World Bank estimated that the Argentine economy will fall 2% in 2023, which means a reduction of four points compared to its last report and attributed the setback to the severe drought that affected the country.

Likewise, he estimated that the country will recover in 2024 with a growth of 2.4% and in 2025 with an expansion of 2%.

The entity clarified that these improvements will occur as the country “recovers from the severe drought that affected agricultural production.”

The data is part of the report on “World Economic Outlook” presented today in Washington.

“In 2022, the growth of the main Latin American economies slowed down due to lower external demand and the restrictions on monetary policies. During the fourth quarter of 2022, Argentina and Brazil experienced a contraction, while other economies registered milder growth, ”explained the World Bank.

Likewise, the entity maintained that “these perspectives are exposed to several risks of deterioration” and among them it remarked that given “the persistent inflation in advanced economies, it is possible that their central banks should maintain more restrictive monetary policies than those assumed at the beginning” .

Along these lines, he remarked that “in particular, it may happen that the currencies of the Latin American and Caribbean region depreciate with respect to those of the advanced economies, which would increase the costs of debt service and further increase inflation.” local”.

The pessimistic forecast of the World Bank is added to the last correction of the IMF that also changed its forecast for Argentina to negative territory.

The organism in charge of Kristalina Georgieva went from relying on a growth of 2% to a contraction of 0.2%.

This dynamic is one of the reasons why the IMF agrees to rediscuss the goals of the ongoing program.