Argentine economy shrinks 5.8 percent in May year-on-year

Argentina says its economy contracted 5.8 percent in May compared to the same period a year ago.

The official INDEC statistics agency also said Tuesday that economic activity shrank 1.4 percent in May versus April.

Argentina has been hit by a recent currency crisis. That led the government to seek a $50 billion financing deal with the International Monetary Fund aimed at strengthening the sputtering economy as the country fights double-digit inflation.

The statistics agency said agriculture and livestock were among the most-affected industries contributing to the slowdown. A hike on utility rates also affected economic activity.

Economic analysts say there is a high risk that Argentina’s economy will experience a recession in 2018.