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Argentina’s economy minister quits over inflation crisis

Argentina’s economy minister, Martin Guzman, the architect of a recent major debt deal with the International Monetary Fund, resigned on Saturday (Sunday AEST) as deep splits emerged in the ruling coalition over how to handle mounting economic crises. Mr Guzman, a minister since late 2019 and a close ally of President Alberto Fernandez, posted a letter on Twitter announcing his decision, adding he maintained “confidence in my vision of the path Argentina should follow”. The centre-left president is facing…

Is Argentina a risk worth taking ?

  Argentina was a first world country at the beginning of the twentieth century, during the worldwide agricultural commodities boom but sadly, lost its way with social and economic policies, more associated with the fascist governments of Europe, from the 1930s under a movement called Peronism. Peronism is what could be described as a movement that is “a riddle, wrapped in a mystery, inside an enigma”, in that it is almost impossible to define in conventional politics. At times it swings to leftist…

Buying real estate in Argentina which is in another crisis

The pandemic has further deepened Argentina’s already serious economic woes. A bad situation has become even worse. But is it a good country to invest in? It is likely the current government will lead Argentina into a serious default just as the same administration has done in the past. Printing pesos to pay off USD debt just causes inflation. Argentina today is not-so-quietly heading towards the famous fiscal cliff and a very hard landing. ‘Argentina looks absolutely miserable’. However, if you want…

Latin America Business: 2021 Growth Predictions Jump

In a highly positive sign for Latin America business and investment, the UN’s Economic Commission for Latin America and the Caribbean (ECLAC) has significantly raised its predictions for growth in the region during 2021, offering a strong indication of economic reactivation in the wake of the global pandemic. According to a newly released report from ECLAC, gross domestic product (GDP) in Latin America and the Caribbean is now expected to grow 5.9% overall, having been predicted to grow 5.2% in…

Buenos Aires Industrial Market Report 2021

MARKET OUTLOOK: The first semester of 2021 started with positive data for the logistics market in Buenos Aires, with a vacancy rate that went down to14.3%, that is to say 4.47 points lower than the previous semester, which provoked a rupture in the upward trend that had beenmaintained since the end of 2018.This way, the recovery towards the second semester of the year begins, based in the growth of e-commerce in the pandemic scenarioand also in the change of consumption habits, which have turned to digital…

The current President pitches Argentina to top global investment funds

President Alberto Fernández pitched Argentina’s growth potential to a host of top global investment funds on Tuesday, as he asked them to back the country and its bid for economic recovery. According to the reports, much of the call – which was organised by the CEO of the Russian Direct Investment Fund, Kirill Dmitriev – was devoted to Vaca Muerta, with the president describing the shale basin as “a fundamental pillar” for Argentina’s economic recovery. Representatives from private and…

Optimistic forecast in coming months due to increased Argentina’s economic activity

Argentina’s economic activity was down 10% during 2020 after falling 2.2% in December versus a year earlier, but better than the average fall analysts forecasted and that the initial government projections. Argentina’s economy, in recession since 2018, and stagflation since 2012, was hit hard by the COVID-19 pandemic and a lengthy lockdown in the country to rein in new cases, though there have been signs of a revival in recent months as restrictions have been eased. Economy activity was up 0.9% in December…

Political Risk Analysis: What’s Next For Argentina?

On October 28, 2019 voters in Argentina elected Alberto Fernandez, a political ally of controversial former President Cristina Fernandez de Kirchner, to replace Mauricio Macri, a business-friendly centrist, in the country’s executive office. The election marks a return to power for Argentina’s left and an uncertain path forward as the country still faces a number of long-term challenges. On December 10 Fernandez will take over as Argentina’s president. Foreign investors are still waiting to see the…

Latam Investor – Argentines Macri Miracle Ends in Default

When Mauricio Macri was elected in 2015 it seemed to herald a new era for Argentina. Now it looks like being more of the same. In August Buenos Aires announced that it would reprofile its debt. In effect it’s another default, with investors having to take a write down for having lent to the Argentine government for the fourth time in the last 30 years and the ninth time since independence from Spain. It’s a sad culmination to a presidency that began with such hope. When Macri came to power his early moves,…

Argentina’s economy lifting out of recession: activity rises in May for the first time in a year

Argentina’s economic activity rose for the first time in over a year in May, a rare boost for President Mauricio Macri as he looks to dig the South American country out of a crippling recession ahead of presidential elections later this year. The 2.6% rise versus the same month a year ago topped even the most optimistic estimates from analysts and broke a run of 12 consecutive months of falling economic activity. The monthly growth will come as welcome news for Macri, whose popularity has taken a pounding…

BlackRock bets on ‘cheap’ markets in Brazil and Argentina

When it comes to Latin America, BlackRock Inc. favours Brazilian and Argentine stocks “We see both markets and currencies trading at very cheap levels,” said Ed Kuczma, BlackRock’s portfolio manager, who oversees US$1.9 billion in the company’s Latin American equity funds. “The weakness we’re seeing right now creates long-term opportunities, as companies will take advantage of the weak growth to right-size their operating structure,” Kuczma said by phone. Brazil’s benchmark equity Ibovespa…

Argentina becomes a magnet for bargain hunters as assets collapse

Argentine assets have tumbled so far, so fast that a few stout-hearted investors say it might be time to buy. “Find me a high-yield sovereign country with an IMF program paying so generously,” said Jean-Dominique Butikofer, the Atlanta-based head of emerging-market fixed income at Voya Investment Management, which oversees about $205 billion. “We can agree on the growth outlook, inflation running unexpectedly out of control, the debt dynamic after currency depreciation and worrying technicals. But at…

Reasons For The Weakness Of The Argentine Economy

Argentina has been “printing money for the people” MMT-style for many years. Its wrongly-called “inclusive monetary policy” of the past – print money to finance massive government spending – has driven the country to massive inflation and depression. This is the main reason why a country with an excellent education, human capital, and high economic potential has third-world inflation rates. Argentina inflation rose to 54% annualized this week. Bonds spreads soared to 854 Bps, the two-year…

Argentina: A seemingly unending line of trucks in the ports due to a record harvest

It is proving to be a record harvest which should be around the 140 million tons of grains, a rise of 24% compared to the past agricultural cycle affected by a drought, and thus a barrage of trucks to the ports of the Rosario, which is the largest agro-industrial port and exporter of grains and by-products has begun. According to official estimates, these exports should contribute more than USD 25 billion to the economy. In addition, it is estimated that this increase in production will represent a positive…

Argentina: After the USD dollar rally, they expect up to USD 25 billion from this years harvest

This was estimated by the Ministry of Finance. Soybean exports will be the main foreign exchange generators for up to USD 17,200 million of this the 25 billion. In the midst of the strong rise of the USD dollar, the Government stressed that in the coming months they expect foreign exchange for up to 25 billion dollars. Soybean exports will be the main foreign exchange generators for up to USD 17,200 million. Corn exports would reach USD 4,874 million in 2019 (calendar year), with a conservative view, and thus…
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