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An Argentinian man shows up against rising utility prices and government negotiations with the IMF in Buenos Aires. Eitan ABRAMOVICH / AFP

The Central Bank of Argentina is correcting its economic forecast for this year, inflation and recession will be larger than expected according to the latest estimates.

Inflation should reach 55% in 2019 against 40% originally planned. The drop in GDP will be 2.5% or 0.9 point of additional tumble. Projections released the day the country's stock market plunged nearly 12%.

The country hit hard

Argentina is in the middle of economic slump . The recession hit the country hard since the second half of 2018 and the peso, the national currency lost 20% of its value in the last three weeks.

As a result, real wages are falling, leading to a drop in consumption and investment. To limit this volatility of the peso, the government last Sunday imposed an exchange control to businesses and individuals.

Rescheduling of the loan

Argentina has also asked the International Monetary Fund to reschedule the repayment of its loan, $ 57 billion granted a year ago, in exchange for austerity.