Skip to main content

Argentina: Stimulus may backfire as bank deal falls through

Negative comments from holdout creditors suggest that a solution to the Argentine debt dispute involving private banks has fallen through. That, along with interest rate cuts and monetisation of the government’s budget deficit, threatens to spark capital flight and prolong the ongoing recession. As such, downside risks are mounting to our forecast for GDP to contract by 1% this year.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.