A slow adjustment to the new government’s policies, low commodity prices and the prolonged recession in Brazil are factors clouding the growth outlook for this year. However, the economy will likely speed up in the medium-term amid an improvement in the external sector and the country’s return to international credit markets. Analysts project Argentina’s GDP to contract 0.7% in 2016, which is down 0.4 percentage points from last month’s Consensus. For 2017, analysts project the economy to accelerate and increase 2.9%.