BMI Special Report – Argentina: Can Another Crisis Be Avoided?
Business Monitor International (BMI) has just published a Special Report – Argentina: Can Another Crisis Be Avoided? – that puts the recent currency devaluation into the broader context of a change in government policies in order to avoid a major economic crisis.
The report brings together our Country Risk as well as Oil & Gas analysis, including ourmacro-industry strategy view.
We believe Argentina's economic leadership has taken the initial steps needed to manage long-standing economic imbalances and engineer something of a 'soft landing' for the economy. The recent devaluation has bought the government time to address other structural issues – such as high inflation – as well as bring in investment to the oil and gas sector, which we believe will be crucial to stabilizing the country's external accounts over the medium term.
However, there are still lingering questions, such as whether the government will be willing to rein in fiscal and monetary expansion, or whether popular opposition to required reforms will prevent the government from moving further.