Argentina’s economy contracted more than expected in December even after the country won its much-celebrated third World Cup title, confirming the view that the nation will likely enter recession later this year.

Economic activity contracted 1% in December from the prior month, the fourth straight month of declines, according to government data published Thursday. From a year ago, activity dropped 1.2% during the month, worse than economists’ expectations for 0.9% growth and the first negative annual print since early 2021.

The economy’s poor performance in December dispels any hopes that Argentina’s World Cup victory during the month, the first in 36 years, would boost growth. Other countries that won the tournament saw growth pick up after winning, according to one study.

Although the government expects 2% annual growth this year, economists surveyed by the central bank see gross domestic product expanding only 0.5% in 2023. Analysts also forecast that the economy contracted for two straight periods on a quarterly basis at the end of 2022 and the start of this year, constituting a recession.

Full article: Argentina Economy Contracted in December Even After World Cup Win – Bloomberg