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Weekly Report - 20 December 2018 (WR-18-50)
ARGENTINA: Macri endures economic and legal setbacks
President Mauricio Macri will be keen to see the back of 2018. At the start of the year, the economy was showing signs of picking up pace, albeit inflation remained untamed, and he looked a strong bet to win re-election in October 2019. At the end of it, he is struggling to correct a listing economy, with inflation having scaled a 27-year high, according to figures published by the national statistics institute (Indec) on 13 December. To top it off his government’s attempts to get the economy on an even keel by erasing the fiscal deficit in 2019, as part of its unpopular credit agreement with the International Monetary Fund (IMF), were dealt a blow when the supreme court issued an adverse ruling on state pension payments which could end up draining state coffers of some US$3bn.
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