Latin America Macro Basics

Unlike its Latin American brothers, Argentina shows a clear tendency to high inflation rates. Meanwhile countries like Bolivia estimate a monthly printing of -1.84% accumulated for 2020, Argentina's register was of 28.29% (almost sixteen times more) In this graph we can see the diferent ratios of inflation in the diferent countries. Argentina got the red card some time...

COVID-19 impacted all economies, reaching historical lows, in April 2020. By May, industrial production started to regain strength. During the second half of the year, values begin to look like figures pre pandemic. Recent values show Argentina's as one of the greastest...

In response to the uncertainty brought by the COVID-19 pandemic, Latin America's economies showed an increase in their sovereign spread, with Argentina having the second-highest rate (4,361 bps, lower than Venezuela's 3,500 bps). As the year went through and the pandemic's first wave winded down, LAC's risk premia moved downward and, eventually, stabilized. Argentina did not share the same luck as its neighbors. Although its country risk dropped after the debt exchange (September 2020), since then it has moved upwards, reaching 1,505 bps by early June. Investors seem very wary about the creditworthiness of Argentina's national government: for them, (another) sovereign default seems likely to...