The drought in Argentina could have a negative impact of 1.8% of GDP

Published 2023년 1월 12일

Tridge summary

Argentina is facing potential significant losses to its agricultural exports, with the economy expected to decline by 1.8% due to drought conditions impacting key crops such as wheat, barley, soybean, corn, and sunflower. The Economic Studies Department of the Argentine Grain Exchange reports that the drought could lead to a decrease in production by as much as 45% for soybeans, 35% for corn, and 75% for sunflower, causing a range of subtractive impacts on the country's Gross Domestic Product and export earnings, with the most pessimistic scenario projecting a loss of 13,100 million euros in exports and a reduction in state tax revenue.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The country would lose up to an amount of 13,100 million euros in exports MADRID, 12 Jan. (EUROPA PRESS) - The high temperatures and the lack of rainfall could limit the performance of wheat, barley, soybean, corn and sunflower crops in Argentina, which would translate into a negative impact of 1.8% of the country's Gross Domestic Product (GDP). . According to a report by the Economic Studies Department of the Argentine Grain Exchange, the adverse effects of the drought "limit" the growth of Argentine crops in the 2022-2023 campaign, generating "great uncertainty" in projected production. "The low availability of humidity and the high temperatures condition the final planted area, its productive dynamics and, consequently, the volume projections of the harvest," the document indicates. Thus, with regard to soybeans, corn and sunflower, in a moderate scenario, their production could be 41, 44.5 and 3.7 million tons, respectively. However, in a pessimistic scenario, with a more ...

Source: europapress