The International Monenatory Fund forecasts two years of recession for Argentina in a context of “increasing economic misbalances” and “uncertainty” because of the ongoing litigation with the holdouts or vulture funds, as well as inflationary tensions. In the latest World Economic Outlook, WEO, IMF anticipated that Argentina will undergo a 1.7% contraction this year and another 1.5% negative growth in 2015. The forecast mentions the “growing macroeconomic misbalances and uncertainties linked to the persistent confrontation with creditors” that did not accept the restructuring of sovereign bonds. It also warns that inflation remains high and that the gap between the official US dollar exchange rate and that of the parallel dollar has increased in recent months. There is nothing here that is a suprise to the market.
Posted on: Thu, 09 Oct 2014 12:45:42 +0000
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