Argentina: Again on the brink of default

As the incoming government of president-elect Fernandez prepares to enter office in December, it must prepare to face a dire economic situation. Within the last year, Argentina has plummeted into another default on its debt. The poverty rate has increased drastically, as well as underemployment and the percentage of the population living in extreme poverty, as the prices of public services increase. There was indeed a substantial body of supporters for Macri that was against former president Kirchner on the grounds of her being investigated in 11 corruption cases. Nonetheless, this was not enough on its own, alongside the deteriorating economy, to keep Macri afloat. Political cohesion will be questionable with the new government, as Fernandez and Kirchner’s Peronist coalition hold only one more seat than their opposition in the Chamber of Deputies (still, less than a majority), while they maintain a majority in the Senate. Furthermore, the new regime will depend on striking a beneficial deal with the International Monetary Fund to manage its debt repayment, and working with China and Chinese investors to continue various infrastructure projects that might help the economic efficiency of the country’s exports.

Read the full report on the Geopolitical Intelligence Services website.