Argentina Economic Outlook
May 17, 2016Argentina officially exited default in late April following the payment of USD 9.3 billion to holdout bondholders. The payment was carried out after the government managed to successfully finalize the sale of USD 16.5 billion in bonds. The settlement with the holdouts also paved the way for the government to pay the holders of restructured bonds. Following the end of the holdout saga, the country’s debt rating was upgraded by the three important rating agencies. While the return to credit markets marks a milestone for Argentina, Mauricio Macri’s aggressive reform drive is triggering massive discontent at home. In recent weeks, thousands of people have taken to the streets to protest against layoffs and austerity cuts. Against this backdrop, earlier this month, Macri struck a deal with local businessmen to suspend layoffs for 90 days. High inflation and massive job cuts are a main cause of concern for Argentinians. In April, consumer confidence deteriorated to the lowest level in nearly two years.
Argentina Economy Data
5 years of Argentina economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.69||0.15 %||Dec 17|
|Exchange Rate||14.04||-0.44 %||May 20|
|Stock Market||12,656||0.24 %||May 20|
Argentina Economic Growth
May 17, 2016A slow adjustment to the new government’s policies, low commodity prices and the prolonged recession in Brazil are factors weighing on this year’s growth outlook. However, following the renewed access to international capital markets, the economy is expected to largely benefit from fresh capital inflows. Analysts project Argentina’s GDP to contract 0.8% in 2016, which is down 0.1 percentage points from last month’s Consensus. For 2017, analysts project the economy to accelerate markedly and increase 3.0%.
Argentina Economic News
May 17, 2016
Consumer prices in April increased 6.5% over the previous month, according to the inflation index reported by the National Statistics Institute (INDEC) covering the city of Buenos Aires.
May 12, 2016
The Universidad Torcuato di Tella (UTDT) consumer confidence index decreased from 48.2 in March to 43.2 in April, which marked the lowest reading since September 2014.
May 12, 2016
Consumer prices in March increased 3.3% over the previous month, according to the inflation index reported by the National Statistics Institute (INDEC) covering the city of Buenos Aires.
April 26, 2016
In March, exports expanded 1.6% over the same month last year, which was significantly below the 6.2% increase observed in the previous month.
April 18, 2016
Since taking office last December, President Mauricio Macri, has accomplished his key campaign promises such as scrapping currency controls and reaching a deal with the country’s holdouts, thus ending 15 years of isolation from international capital markets.