Argentinian President Javier Milei's first year in office has been much more successful than we (and other analysts) had expected but, absent a weaker exchange rate, it will be difficult to return the economy to growth while sustaining the progress that’s been made so far. Elsewhere, the Brazilian central bank's jumbo rate hike this week failed to stop the slide in the real, suggesting that the central bank can only do so much; crucially, the government needs to now show a clear willingness to rein in spending. Failure to do so will keep the real on the backfoot.
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