BUENOS AIRES (Reuters) - Argentina 's economy shrank 0.9 % YoY in 2008 after the country 's agricultural sector was hit by drought , according to government data . The contraction came as agriculture plunged 31 % after soyabean and corn crops had shrivelled due to drought . The Argentine central bank also capped its policy deficit at 40 % in its first decision since a leadership change . Economists have criticized Argentina 's growth forecasts because of the drought and a run on the peso that triggered a financial crisis , prompting it to ask the International Monetary Fund for financing .
Argentina 's economy shrank 0.9 % YoY in 2008 after the country 's agricultural sector was hit by drought , according to government data . The contraction came as agriculture plunged 31 % after soyabean and corn crops had shrivelled due to drought . The Argentine central bank also capped its policy deficit at 40 % in its first decision since a leadership change . Economists have criticized Argentina 's growth forecasts because of the drought and a run on the peso that triggered a financial crisis , prompting it to ask the International Monetary Fund for financing .