(Bloomberg) -- Argentina’s economic activity snapped a four-month decline to expand in July, representing a brief respite as South America’s second-largest economy slides into recession.

The economy grew 2.4% in July from a month earlier, compared with the 0.9% median estimate of economists surveyed by Bloomberg, according to government data published Tuesday. From a year earlier, the economy shrank 1.3%, less than the 3.8% median estimate of analysts.

Argentina’s gross domestic product slumped 2.8% in the second quarter, the deepest decline since the peak of the pandemic in early 2020. A record drought that wiped out $20 billion of agriculture exports and accelerated food inflation took a heavy toll on the economy while imports rose between April and June, also weighing on growth.

Inflation running at 124% and a wide open October presidential election is clouding the economic policy outlook. Libertarian candidate Javier Milei garnered the most votes in a near three-way way tie in an August primary vote and the government devalued the official exchange rate by 18% the next day, fueling inflation levels in August not seen in 30 years.

Economists surveyed by the central bank see GDP declining 3% this year. 

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