Argentina Economic Outlook

On 29 August, the president of the IMF International Monetary Fund Mauritius · McCrea (Maurizio McCrea) requested so far, the worst economic crisis ever developed and peso's sharp sale triggered chapter. Macri led investors to call the IMF to accelerate the June agreed to pay $ 50 billion standby arrangements (SBAs), and that the deep financial crisis fled to become more evident . In order to increase expenditure, the government proposed a new fiscal reform designed to accelerate integration. Before the IMF announces the revision of the SBA, the economy continues to face intense pain. Trust in the recession, the more severe financial situation may be detrimental to spending and investment in the quarter. Due to the drought, the contraction in the second quarter of economic activity, the construction industry brewery corruption scandal brought serious damage to the agricultural sector which put pressure on economic activity in the remainder of the year

With the worsening crisis and sluggish activities, the economy can enter a recession, and most of the focus of consensus analyst forecast of economics currently think that the economy will shrink this year. Still, many analysts still consider recent events. However, after the appearance of the peso, the fall in loan conditions due to free fall and the expected expenditure on inflation and the investment index will decline significantly. LatinFocus consensus forecast analyst believes that this year's economy shrank 2% from forecast of downward 6% points last month, then returned to 0.7% next year's weak growth in 2019

Despite the economic prospects, the Group believes that consistent, generally positive affirmative, but long-standing social problems in Argentina will not be resolved. Thus, political tension, protest behavior and social unrest are high. Therefore, our investment decision is not Argentina at this time

The economic history of Argentina can be regarded as one of the most frustrating economic developments. Argentina is one of the richest countries in the world in the mid-19th century until the Great Depression. The vast fertile land and regional economic agricultural diversity, to become one of the participants in the driving Argentina in the USA. At the beginning of the century Argentina has achieved remarkable growth since the 1950's, but it has been difficult to explain exactly what was fighting for growth, and in the easy way was wrong. Argentina to bring such economic, political disasters in history, however, will hardly succeed. Initially the failure of import substitution policy continues, military authoritarianism, and ultimately poor public finance management

The OECD expects that economic reforms in recent years, Argentina's economic growth will increase in 2017 and 2018. In 2016, Argentina reformed the national statistical body to increase the reliability of Argentina. This allows the central bank to raise interest rates, inflation, exchange rates and handle pressure. The latest inflation data shows that the inflation rate expected to be 20%, a 1.5% increase, will stabilize in the month. Inflation will be delayed in 2017 on monetary tightening policies and stable exchange rates. In 2016 I confirmed the reliability and transparency of the central bank of Argentina. The labor union is trying to adjust according to the inflation target, while the government is trying to adjust the wage of inflation