Moody’s sees Argentina’s GDP contracting 1.5% in 2019
Moody’s has projected that Argentina’s Gross Domestic Product (GDP) will contract 1.5% in 2019, CEEMarketWatch reported. This forecast is less optimistic than rating agency’s previous estimate of 1.3% decline.
Moody’s considers that the biggest risks for the country are the combination of a weak economy and policy uncertainty as well as an eventual currency-mismatch danger for some provinces with FX debt and no FX-denominated revenue sources. The credit rater also said that the worsened economic conditions are having negative impact on local banks’ lending prospects.
On the positive side, the rating agency has forecasted that the Argentinian economy will expand 1.5% in 2020, exceeding IMF’s 1.1% GDP growth projection.Original source: CEEMarketWatch