S&P raises Argentina's credit rating
[BUENOS AIRES] Standard & Poor's raised Argentina's credit rating one notch Tuesday, from B- to B, saying Latin America's third-largest economy was on the verge of exiting recession.
The rating bump gives a boost to center-right President Mauricio Macri, who has launched sweeping - often unpopular - economic reforms aimed at reviving growth.
"Argentina is making progress in resolving several macroeconomic imbalances in the country while gradually rebuilding the country's credibility," the rating agency said in a statement.
It predicted Argentina would return to economic growth of three percent this year, with inflation - a tricky problem for Mr Macri - falling by half, to 20 per cent.
Many economic analysts see signs of "green shoots" in Argentina, after it posted growth of 0.5 per cent in the last quarter of 2016.
S&P predicted "broad continuity" over the next two years, but also warned of "uncertainties about the pace of implementation of the government's corrective economic plan given ongoing political challenges."
Mr Macri, who took office in December 2015, faces a key test in midterm elections this October.
Some analysts say the upcoming vote has forced him to back off his austerity reforms.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Trade between Singapore and Asean was at S$295.6 billion in 2023
UK passport control hit by outage causing long waits at airports
Fed’s Kashkari says rates likely on hold for ‘extended period’
China’s Xi lands in Serbia after talking Ukraine, trade in France
Stormy Daniels details alleged sex with Trump at hush money trial
Indian vote body tells X to remove Modi party video targeting Muslims, opposition