Argentina’s Lockdown Hits Revenue Hard as Crisis Deepens

Argentina’s tax revenue is deteriorating quickly as a nationwide lockdown weighs on an already weak economy.

Tax revenue fell in March for the second straight month while rising 35% from a year ago -- way less than inflation that’s running at around 50%. Government income is dropping just as the country tries to restructure its debt and increase social spending to cope with the impact of the coronavirus pandemic.

Economists are sharply cutting forecasts for Argentina’s economy, with Goldman Sachs forecasting a 5.4% contraction this year. Since March 20 Argentines have been under a nationwide lockdown, which will last until April 13.

To contact the reporter on this story:
Patrick Gillespie in Buenos Aires at pgillespie29@bloomberg.net

To contact the editors responsible for this story:
Juan Pablo Spinetto at jspinetto@bloomberg.net

Walter Brandimarte

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