Crisis management

ARGENTINA - Report 10 Sep 2018 by Esteban Fernandez Medrano

These days, Macri´s administration has faced its second significant market run against the peso since the devaluation in May, which forced it to accelerate its macroeconomic convergence plan. This comprises reversing the excessive debt levels of the Central Bank and improving the poor fiscal outlook.

In doing so, Macri is walking a narrow path in which he must balance the need to implement costly economic adjustments while avoiding depleting his political capital, or at least doing so at a speed at which he avoids significant social unrest and maintains the hope of recovering ahead of the October 2019 presidential election.

While the market expects news from the current IMF renegotiatons and Macri´s political ability to close the 2019 budget with the opposition, the sense that remains is whether at such high FX rates, it might not be the time to take the risk of investing in peso assets.

In this report, we review the behavior of those macro variables and the economic policies that are being implemented.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.