Economic crisis and political risk batter Argentina. Way out or opportunity?
Monday 13 May 2019
Research / Market
Economic crisis and political risk batter Argentina. Way out or opportunity?
Argentina’s economic situation: The economy is facing severe stagflation. Monetary and fiscal policy are extremely tight, consumer and investor confidence is low, and inflation is proving very sticky amidst wage indexation. Whilst we view the fiscal and monetary mix to be appropriate given Argentina’s macro challenges, it is possible that these measures may not be able to stabilise the economy in time for the elections.