Country Economic Forecasts > Argentina

The debt default saga has effectively come to an end after 15 years of disputes. The governments deal with the debt holdouts was approved in Argentinas Chamber of Deputies and Senate, and then a US appeals court cleared the way for Argentina to issue bonds in international markets by affirming Judge Griesas ruling to lift injunctions that barred the country from paying holders of its restructured bonds. Now the country is set to issue up to US$15bn of medium-to-long-term debt in the coming days. There was also positive news on the economy. According to the latest data, GDP expanded by 2% in 2015, driven by a record soybean harvest and a surge in construction. Notwithstanding these reassuring developments, the economy will still be held back this year by the tightening in monetary and fiscal policy required to reduce inflation and narrow the budget deficit. We continue to expect that GDP will grow by 0.3% this year, before picking up to 2.5% in 2017.