Argentina’s GDP contracted by 4.9% YoY in Q2 2023, a steeper decline than market forecasts of 4.8%. This contraction marks the first since Q4 2020, primarily driven by a historic drought that severely impacted grain production. The sectors most affected were agriculture, which led to the contraction, followed by transport and communications, electricity, gas, and water. On the flip side, growth rates in construction and mining slowed but did not contract.