Investor sentiment towards Argentina has improved significantly in the past few months and it now looks like the government will probably be able to make the sovereign debt repayments that are due next year. But there are still no real signs that the government will address one of the key underlying issues behind Argentina’s economic woes – the overvalued peso. Absent a weaker currency, it’s hard to see Argentina’s economy returning to growth on a sustained basis without a deterioration in its balance sheet. A sovereign default later this decade remains a high risk.
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