By Federico Tessore – Investor Passport (Argentina) –
Investors are asking themselves three questions right now, whose answers are going to define the decisions they are going to have to make this year.
Let’s start with the first one…
What’s The Economic Outlook For 2017?
The outlook is not good locally or internationally. There’s only one thing that’s certain and that’s uncertainty. You can add high risk to that equation.
Let’s begin with Argentina. We are facing a year in which economic indices are slow to rebound and the economy remains stagnant, despite all the adjustments the Macri government has made. It’s not clear whether the economy is sluggish because the measures failed to go far enough or because those partial adjustments are actually the problem.
Without getting bogged down in it all, it’s unlikely the situation will change this year. The economy will probably grow, but not at a significant rate. Which means people won’t feel like the economy has gotten better.
The most complicated issue this year is politics: how will the Macri government be able to win if it lacks strong candidates? What will happen in Argentina if Macri loses and his party’s position in Congress is further undermined?