(Bloomberg) -- Argentina's economy posted its sharpest quarterly contraction in recent history, though still narrowly beat economists' forecasts.
Economic activity declined 16.2% in the second quarter compared to the first, reflecting the full impact of a nationwide Covid-19 lockdown implemented in late March. Economists had forecast a 16.6% quarterly decline.
From a year ago, economic activity dropped 19.1% in the quarter, the largest drop since at least 2004. Investment fell nearly 40% from a year earlier.
ARGENTINA REACT: 2Q Growth Plunge Sends Economy Back 15 Years
Argentina's recession is stretching into its third year now, with double-digit unemployment and inflation over 40%. President Alberto Fernandez has significantly increased spending to stimulate the economy, despite having no access to credit markets following the nation's ninth default. Argentina emerged from default earlier in September.
Although activity continues to rebound from its low point in April, Argentina's outlook remains dire. Economists polled by the central bank see a 12% economic decline this year, on pace for the worst one-year drop on record. Fernandez's government recently tightened currency controls and hasn't spelled out an economic plan yet.
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