Buenos Aires : Office - Q3 2016

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The new government administration has been focusing all its attention in the standardisation of the exchange market, the negotiation with the holdouts and the restoration of credibility of the economy by restructuring a plan of reduction of public expenditure.

These directives are expected to lead to a positive economic impact, although not immediately, in the rehabilitation of Argentina´s economy. Certainty, the establishment and implementation of the new economic policies that aim to promote a healthy economic environment have increased expectations for recovery of foreign investment, which will also contribute to the country to reach its full economic potential.

However, early results have been decidedly mixed. Public expenditure cuts and the updated of rates of public services implemented in an economic context with alongside very high inflation levels had serious effects on the purchasing power of households, despite of the salary increment obtain by the unionized workers.

Source : Cushman & Wakefield

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