According to the Financial, “Argentina should be experiencing a boom” and lists some of the potential sectors that the country has to come out of the harsh economic crisis it is going through.
delayed boom
“The South American nation has some of the largest oil and shale oil reserves in the world. It has a vibrant technology sector and has created the most successful e-commerce giant in the region. It is one of the leading international grain exporters and has abundant lithium reserves at a time when demand for both has skyrocketed due to the war in Ukraine and the global drive for electrification,” he explains.
Next, the text says: “Argentina is teetering on one of its periodic collapses. Inflation reached 64% in June; it may reach 90% by the end of the year. On the black market, the dollar is trading at more than double the official exchange rate, since that the Argentines run to get rid of the pesos”.
Debt
Regarding the crisis of debtthe editorial states that “sovereign debt, restructured less than two years ago, is trading back at stressed levels as investors hedge.”
In another passage of the article, the editorialists described Argentina as “permanent defaulter of South America” and warn about the dangerous approach to what they describe as a “financial ruin”.
At the same time, the Financial Times praised the now former minister of Economy Martín Guzmán: “Guzmán had led successful debt restructurings with private creditors and the IMF, but he was hated by Fernández de Kirchner and his allies for refusing to spend more.”
“Her departure deprived the government of its only credible figure. Silvina Batakis, her little-known replacement, was quick to pledge her commitment to meeting the IMF’s goals. The odds, both political and financial, are against her,” the text concludes. .
Source: Ambito
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