Negative comments from holdout creditors suggest that a solution to the Argentine debt dispute involving private banks has fallen through. That, along with interest rate cuts and monetisation of the government’s budget deficit, threatens to spark capital flight and prolong the ongoing recession. As such, downside risks are mounting to our forecast for GDP to contract by 1% this year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services