In another country this weekly editorial would inevitably be about the Budget. The Bill was presented last week. It has a realistic activity expectation, a too-high deficit, and a stubbornly low inflation that underestimates revenues.
On the back of the debt exchange the government had an opportunity to jumpstart the economy. But Argentina is the country that never misses an opportunity to miss an opportunity.
The new administration is moving very quickly to establish a new policy regime that addresses the main obstacles that have been affecting investing and growth.
The economy seems to have touched bottom in April, but the recovery is not looking like a V-shaped one. Firstly, the lockdown continues in the Buenos Aires area and is likely to do so through July.
Pese a las mayores restricciones cambiarias, esperamos que las presiones sobre el tipo de cambio oficial persistan y que el BCRA siga vendiendo reservas.
