Argentina: Ongoing drought to negatively affect economy

Event

An ongoing drought, thought to be the worst in 30 years, is expected to significantly affect the country's agricultural output and the economy more generally in 2018. The current water shortages are due to a lack of rain in recent months, with rainfall reaching only a quarter of normal levels.

Soybean and corn shipments typically account for around 36 percent of Argentina's total exports and estimates show that the crop yield for both will be significantly lower this year. The Buenos Aires grains exchange forecast estimates this year's soy production to be 25 percent lower than 2017's crop. The county is still recovering from a 2016 recession and was hoping for a successful crop yield to drive economic growth and extend the nation's recovery; however, as the drought intensified over the last few weeks, forecasts have warned that the country's GDP could fall by 0.5 percent.

Advice

Individuals present in Argentina are advised to follow any water conservation instructions issued by local authorities and to keep abreast of the situation.