Argentina's GDP to fall 11.8% in 2020 due to COVID-19, central bank poll says

FILE PHOTO: Traders work on the floor of the Buenos Aires Stock Exchange, in Buenos Aires, Argentina February 26, 2020. REUTERS/Agustin Marcarian

BUENOS AIRES (Reuters) - Argentina’s economy is set to contract by 11.8% in 2020, a slightly rosier outlook than a previous estimate of a 12.1% drop, according to a central bank survey of economists and analysts on Friday.

The bank´s Market Expectations Survey (REM) predicts inflation at 36.9% in 2020. Prices are expected to jump 3% in September, the poll showed.

“During the third quarter of 2020, GDP would increase 9.8% compared to the second quarter of 2020, which suggests that the period of greatest impact of the coronavirus pandemic is behind us,” the poll showed.

The economists polled said the average nominal exchange rate in Argentina would reach 83.8 pesos per dollar in December 2020 and 121.5 pesos per dollar in December 2021.

The poll surveyed consulting firms, research centers, financial entities and analysts between Sept. 28 and 30.

Reporting by Maximilian Heath; writing By Dave Sherwood; editing by Grant McCool