Fitch sees Argentina’s GDP shrinking 2.5%, inflation at 40% in 2018

Fitch Ratings forecasted that Argentina’s economy would decline 2.5% this year, Business News Americas reported. The rating agency also expects CPI inflation to be over 40% in 2018, largely exceeding central bank’s target of 27%.

Fitch commented that the macroeconomic performance of the country has worsened during the last four months, which caused a loss of investor confidence in the policies of the local government. The credit rater also added that decreasing real wages and the fiscal consolidation measures would also hit Argentina’s economic growth this year.

On the bright side, the rating agency praised Macri’s efforts to reduce country’s dependence on foreign loans.

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