Key indicators released over the past week show slumps across the board, from consumer spending to manufacturing. Meanwhile, the informal dollar exchange rate, or “blue dollar,” reached an all-time peak of AR$1,300 on Thursday. This confirms the economy has shrunk for two consecutive quarters, meeting the technical definition of a recession. Argentina’s GDP fell by 1.6% in 2023, and the International Monetary Fund forecast a 2.5% drop for 2024. The remaining 80% must be sold in the official exchange market, meaning that sales bolster the Central Bank’s international reserves.

Source: Bueno Aires Herald May 25, 2024 14:23 UTC