Infographic: How Macri’s hopes of growth fizzled out

28th November 2019

By The Essential Staff

Infographic: How Macri’s hopes of growth fizzled out

With President Mauricio Macri’s term coming to an end in two weeks, the INDEC statistics bureau’s latest economic activity report (a very close proxy to GDP) published on Tuesday was an opportunity to get a general picture of what his presidency was like in terms of growth.

</p> <img class="wp-image-5737 aligncenter" src="" alt="Economic activity during Mauricio Macri's administration" width="525" height="383" srcset=" 300w, 600w" sizes="(max-width: 525px) 100vw, 525px" /> <p>The report showed that the country continues to be on a downtrend, with September 2019 the worst month in terms of output since he took office in December 2015. Those closest to Macri&#8217;s camp think this latest decline is linked to Alberto Fernández&#8217;s presidential victory in August&#8217;s primaries, which helped trigger a selloff in Argentine financial markets.</p> <p>But the beginning of the drop can be traced further down the road, to early 2018, when then Finance minister Luis Caputo started to struggle to find new buyers for Argentina&#8217;s massive debt issuances. Up to that moment, and despite an initial decline in 2016 following the inevitable devaluation after the exit from Cristina Kirchner&#8217;s &#8220;clamp&#8221; on foreign currency purchases, Argentina seemed to be recovering economically. Yet some analysts pointed that the bounceback was heavily dependent on debt, and that things could turn around as soon as global market conditions changed for Argentina.</p> <p>When they did, Argentina stumbled, calling on the IMF&#8217;s doors in May 2018 as the value of its assets collapsed. As the graph shows, the second quarter of 2018 was the turning point, coinciding with a drought in some of the countryside&#8217;s most productive areas which only made things worse.</p> <p>Overall, Argentina&#8217;s economic output is now smaller than when Macri took office, and the picture looks even worse if done in per capita terms. This marks the second consecutive economic presidency in which economic production and standards of living faltered. But with salaries dropping even faster than output during Macri&#8217;s term, Argentines opted for a return to Peronism over the anti-Peronist incumbent. What will Argentina&#8217;s economic activity evolution look like after the 2019-2023 period? With Fernández waiting for the presidential transition to announce his economic plan in full, the days after December 10 are likely to give us the first clues.</p> <p>

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The Essential Staff

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