Argentina’s economy contracted in the second quarter compared to the first three months of the year, as next month’s crucial midterm election looms for President Javier Milei. Output shrank by 0.1 percent, while the median estimate of economists surveyed by Bloomberg expected 0.1 percent growth. Compared to last year’s second quarter, the local economy grew 6.3 percent, just below the 6.5 percent expansion expected by the same survey. “Heightened political and market uncertainty have cast doubt over the sustainability of Milei’s macroeconomic programme, likely sparking a negative feedback loop that’s weighed on activity,” said Jimena Zuniga, geoeconomics analyst at Bloomberg. Economists forecast growth for the year at 4.4 percent, revised down from five percent, according to the Central Bank’s August survey.