Martin Guzman writes: \u00a0Mauricio Macri\u2019s election as Argentina\u2019s president brought to an end 12 years of government led by N\u00e9stor and Cristina Fern\u00e1ndez Kirchner. Macri\u2019s administration inherits a delicate economy. If he is not careful, Argentina could face a balance-of-payments crisis, owing to deteriorating external conditions and macroeconomic mismanagement, especially since 2011.<\/p>\n
Some aspects of Argentina\u2019s economic situation, however, are highly desirable \u2013 not least its low debt-to-GDP ratio. As a result, Macri\u2019s government faces a much less daunting task than the one confronting Kirchner in 2003, after a decade-long experiment with Washington Consensus policies (financial deregulation, trade liberalization, and privatization), together with the peso\u2019s peg to the US dollar, ended in disaster. When Kirchner took office, Argentina had just experienced its most severe economic crisis ever. Unemployment, inequality, poverty, and the national debt had all risen. Massive deindustrialization and deep weaknesses in its education system did not bode well for the future.<\/p>\n
In a favorable global environment, the more competitive exchange rate set the stage for reindustrialization, creating jobs for many who had been excluded from labor markets during the previous decade. As a result, from 2003 to 2008, GDP growth averaged more than 8% per year.\u00a0Argentina’s Economy<\/a><\/strong><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Martin Guzman writes: \u00a0Mauricio Macri\u2019s election as Argentina\u2019s president brought to an end 12 years of government led by N\u00e9stor and Cristina Fern\u00e1ndez Kirchner. Macri\u2019s administration inherits a delicate economy. If he is not careful, Argentina could face a balance-of-payments … Continue reading