International Finance

Argentina’s economy faces challenge as Macri loses primary

Argentina economy
The already unstable economy to face further repercussions if the leftist party wins

Argentina’s current President Mauricio Macri faced defeat in the primary elections, against Peronist candidate Alberto Fernandez, causing uncertainty to Argentina economy.

The primary result shows the anger and discontentment people have towards Macri’s rule. The country faced a major economic crisis during Macri’s tenure. The unemployment rate had also risen during his tenure.

Macri received just 32 percent of the votes during the primary elections while his opponent Center – left nominee Alberto Fernandez got 47.5 percent. The primary election in Argentina is more like an opinion poll, which gives an idea as to what people think.

Alberto Fernandez’s running mate is ex- president Cristina Fernandez.

The inflation rate had reached around 50 percent in the year 2018, which triggered an anti-Macri wave in Argentina, even though Macri has the support of financial markets and Washington.

Although Macri has promised to take necessary steps to stabilise the Argentina economy, it did not seem trustworthy enough to the citizens. Macri had borrowed a sum of $55 billion from the International Monetary Fund, a step that was met with wide criticism in Argentina.

“It is clear that Macri’s weakest point is the management of the economy despite the fact that it has improved in the last three months,” said Mariel Fornoni, director of the political consultancy Management & Fit.

Cristina and Albert Fernandez have spoken about eradicating the economic instability of the country, which they blame on Macri’s rule.

Argentinian currency, Peso, fell by 4.8 percent following the announcement of Argentina election results. According to analysts, the market volatility would increase further after the October elections.

The victory of Alberto Fernandez is expected to put new pressure on the exchange rates and stocks due to the interventionist policies taken by Fernandez’s party, as compared to Macri, an advocate of free markets.

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