The Argentine economy is preparing for 2027, where the accumulation of reserves becomes crucial in light of the impending elections and market volatility.
The current economic situation presents challenges, including various sectors facing difficulties and a disinflation process that has yet to surpass a monthly floor of 1.5%. These variables create uncertainty, reflected in a country risk premium that remains close to 500 points. Consultancies have noted an improvement in some nominal indicators, such as the price index for August, although they have also reported a decline in industry and construction during July, along with downward revisions in growth expectations.
Regarding international reserves, Econviews reported that net reserves reach approximately $10.000 million, while liquid reserves rise to $28.000 million, indicating a stronger position compared to the previous year. However, foreign currency purchases in September showed a slowdown, with a daily average of $14 million, representing the lowest level of the year. Econviews emphasized the importance of seizing dollar purchases in the context of a potential increase in financial flows.
On the debt program, it is estimated that the Treasury needs to buy around $6.000 million from the Central Bank and issue about $8.000 million to cover the 2027 maturities. GMA Capital noted that the country risk stands around 490 basis points, while the cost of financing is affected in an environment of high international rates. Economic activity remains a weak point, with declines in industry and construction, and GDP growth expectations have been adjusted downward.
As the country moves towards the 2027 elections, the dynamics of reserves, debt, and economic activity will be crucial for the economic future of the country.
Source: www.infobae.com
