Argentina hit by severe drought last year, hurting crops

05:23

More Videos

Why do Albanians living in Serbia have to fight for recognition?

Will Kosovo’s third election be the last?

Palestine: Actors speak out | Bigger Than Five

EU warns Bosnia and Herzegovina on US-backed pipeline project

Bosnia and Herzegovina is on track to reduce dependency on Russian gas

How much will Americans pay for war? | Inside America

America’s energy shift: The forgotten coal miners | My America

‘Take Me to America’ song unites the Balkans

Have Bulgarians voted for Radev or against the system?

Aid workers under fire: no end to impunity? | Bigger Than Five

Americas

Argentina hit by severe drought last year, hurting crops

Argentina's battered economy contracted 1.6% in 2023, and financial services, manufacturing, wholesale and retail were among the sectors that were hit the hardest. The economy contracted in December by the most since the peak of the Covid-19 pandemic as newly elected President Javier Milei put in motion shock austerity measures Argentina was hit by a severe drought in 2023 that hurt its agro-export industry and subtracted 3.0 percentage points from GDP, according to official data. Last month, the International Monetary Fund -- to which Argentina owes $44 billion -- revised its forecast downward with a contraction of 2.8 percent in 2024. Ultra-liberal new President Javier Milei was elected on promises to slash state spending. Since coming to office in December, he has devalued the peso by over 50 percent, cut tens of thousands of public jobs and halved the size of the government. Annual inflation has hit 254 percent.