Argentina economy to shrink 11.6% in 2020 due to pandemic, central bank poll says

BUENOS AIRES, Nov 5 (Reuters) - Argentina’s economy is set to contract by 11.6% in 2020, a slightly improved outlook than a previous estimate of a 11.8% drop, according to a central bank survey of economists and analysts on Thursday.

The bank’s monthly Market Expectations Survey (REM) predicts inflation at 35.8% at the end of the year. Prices are expected to jump 3.2% in October, the poll showed.

“Participants forecast a slowdown in activity growth for the fourth quarter of 2020 and for the first quarter of 2021 which indicates that the period of greatest impact of the pandemic was concentrated in the first two quarters of 2020,” the poll said.

The economists polled said the average nominal exchange rate in Argentina would reach 84 pesos per dollar in December 2020 and 125 pesos per dollar in December 2021. (Reporting by Cassandra Garrison; editing by Diane Craft)

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