Argentina Summit: Re-emerging on the global stage
After 12 years of a populist and divisive government, Argentina finally has the opportunity to reignite growth. The government inherited by Mauricio Macri from former President Cristina Fernandez de Kirchner—one with currency controls and trade restrictions choking productivity; inflation at around 25%; budget deficit swelling and foreign-exchange reserves dwindling—is very far from the country’s powerhouse status from pre-World War I days when it enjoyed the fastest recorded GDP rate in the world at the time.
Macri’s new government does not have an easy task before them—quickly reversing the populist policies of the preceding Kirchner administrations to avoid an economic crisis. And already in his first month in office, Macri moved quickly to make the long-needed policy changes necessary to spur growth. He devalued the currency, lifted most capital and trade restrictions and kicked-off talks with disgruntled creditors from the nation’s 2001 default. This is creating a much more favourable climate for mutlinationals whose businesses have not been allowed to repatriate the earnings over the last several years.
But there is still a lot more catching up that needs to happen. And despite promising policies, Argentina will still need to overcome some economic trials and tribulations to normalize the economy. A year after Macri’s new government, The Economist’s Argentina Summit 2017 will bring together government and business leaders from inside and outside the country to see whether Argentina is on the right track towards charting a path towards growth and the global prominence it once enjoyed.
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