Latam 8 January 17

LATAM8 Brief  Reports

 

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Latam 8 January 17

Confidence in the Government slightly deteriorated in the last months according to the UTDT index, and was at 50% levels in Dec-16, below the peak of 63% of Jan-16. The main driver is that economic recovery is taking longer than expected. There were changes in the government team, being the most relevant the exit of the Minister of Economy Alfonso Prat Gay, who was replaced by Nicolás Dujovne. Regarding wage agreements, the government aims to anchor inflation expectations by offering 18%, as in the case of the Province of Buenos Aires (with an automatic indexation clause).