LatinNews Daily - 02 May 2024

*The Organisation for Economic Co-operation and Development (OECD) has released a new growth forecast for Argentina which expects its GDP to contract by 3.3% in 2024, down from a contraction of 1.6% in 2023. The OECD’s latest forecast for 2024 is down from its previous (February) forecast of -2.3%. In a note the OECD highlights that Argentina’s economic activity contracted by 1.4% in the fourth quarter of 2023, despite a strong recovery of agricultural output. It adds that “industry, construction, retail sales, financial intermediation and utilities were the sectors most affected by fiscal adjustment and the erosion of real incomes that followed the 54% currency devaluation and subsequent inflation peak in December”. However, the OECD expects Argentina’s GDP to grow by 2.7% in 2025, up from its February forecast of 2.6%. It says that while “high inflation, a sizeable but necessary fiscal adjustment, and policy uncertainty will weigh on private consumption and investment for most of 2024”, the “gradual lifting of import restrictions and currency controls will eventually boost the recovery of domestic demand, particularly in 2025.”