Argentina’s new macroeconomic outlook: too many clouds in the horizon

In the last few weeks the political and economic climate has been heating up on the way to the October mid-term elections, and the government is facing the most difficult political juncture since 2009. The political situation has been dominated by three events.

First, there was a large flood in the city of La Plata (province of Buenos Aires) that caused the death of over fifty people which negatively affected the image of the local, provincial and national governments. There was a widespread perception that the three levels of government failed to respond in an appropriate and timely fashion to the tragedy.