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Economy & Business - March 2012 (ISSN 1741-7430)

ARGENTINA: Problems mount

The government’s mix of economic policies, which it claims has delivered sustained GDP growth over the past eight years, is under unprecedented pressure. The underlying problem is that this government, like all its predecessors, wants to live beyond its means. The government of President Cristina Fernández had probably hoped to return to the international credit markets some time this year, but its falling out with the International Monetary Fund (IMF) means that that the financial markets remain closed. Furthermore, the government’s luck (especially with soya prices) may have run out.

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