Thus, the losses would exceed 14 billion dollars. The data had already triggered the alarms of the national government, which had to renegotiate with the International Monetary Fund (IMF) a change in the reserve goals established in your Extended Facilities program.
The weather was not on the Argentine side, while the drought suffered by the central region since June was added to early frosts in February and a terrible heat wave in the last fortnight, with temperatures of more than 40 degrees.
If we add the lower demand for freight, labor and financial services, the total losses for the national economic activity reach 19,000 million dollarsindicated the Buenos Aires Stock Exchange.
The national government will then have to face a kind of new pandemic with the drought, while the negative impact on the GDP could reach a drop of 3 points.
“The drought will imply a direct negative impact on GDP of 2.4%. If the contraction in the supply of foreign currency is taken into account, in the order of US$ 18,000 million, the economy as a whole could suffer a fall of 3%”, calculated the consultant of the former Vice Minister of Economy, Emanuel Alvarez Agis.
In this way, the “most feared scenario”, in the words of Cristina Kirchnerwhich implies high inflation with a brake on economic activity, is just around the corner.
