Worst drought in 30 years may drag down Argentina’s GDP targets
Argentina is expecting the worst drought in three decades to hit this year, dampening further its prospect of an already lackluster economy.
The dryspell, which may bring about the worst harvest since 2009, may prompt Argentine President Mauricio Macri’s economic team to revise its forecast downward from a 3.5% growth.
The country’s economy was anticipated to be bolstered by its soybean crop production but even this is dispelling its hopes. Couple this with its struggle to tame inflation and boost exports. Soybean and corn shipments account for 36 percent of total exports and the government taxes the former.
“This will probably have a very serious impact on the economy, exports and tax collection,” Emilce Terre, chief economist at the Rosario Board of Trade, was quoted in a news report.