The Globe and Mail reports in its Friday, Nov. 17, edition that global investors expect a large amount of financial pain out of Argentina no matter who voters pick on Sunday as their next president. A Reuters dispatch to The Globe reports that economy minister Sergio Massa and populist outsider Javier Milei go head-to-head in the Nov. 19 presidential election run-off, a choice between sticking with the current Peronist government or a sharp swerve to a right-wing libertarian.
The winning candidate, who would take office on Dec. 10, would need to fix an economy with inflation of 143 per cent, a messy array of capital controls, a looming recession and net foreign currency reserves that JPMorgan pegs at minus $15.3-billion (U.S.).
Mr. Milei's shock therapy approach includes scrapping the central bank and dollarizing the economy, while Mr. Massa's proposal is one of more gradual change though trimming the fiscal deficit and spurring more exports to rebuild reserves.
Argentina had agreed to cut its primary fiscal deficit to 1.9 per cent of GDP this year to comply with a $44-billion (U.S.) International Monetary Fund program that has helped keep the lights on as the agricultural exporter faced a debilitating drought.
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