Argentine GDP plunges in Q4

Argentina's GDP contracted 6.2% year-on-year in the last quarter of 2018, dragging down the reading for the full year to -2.5%.

The economy began coughing in Q2, amid heavy pressure on the peso, rising interest rates and the fallout from a drought. In Q3, Argentina entered a technical recession.

In Q4, gross fixed capital formation tumbled 25.0% year-on-year as private consumption and public consumption fell 9.5% and 5.1%, respectively. Imports fell 26.1% as exports grew 10.4%, according to statistics agency Indec .

Over the whole of 2018, declines in farming, wholesale and retail, transport and manufacturing, among other sectors, were partly offset by gains in industries including fishing, mining, financial intermediation, construction and utilities .

The key farming sector bounced back in Q4.

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The government, in a bid to strengthen the economy, is executing a series of belt-tightening measures as part of a multibillion-dollar IMF bailout package granted last year.

The economy is forecast to contract again this year, with some observers expecting thin green shoots of recovery to emerge from the gloom in the second half.