Downward Revision Looming

March 2008 | Risk Summary

Although our short-term political risk rating is currently at a solid 73.9, there is the potential for this figure to fall substantially in the coming weeks. Firstly, current wage negotiations pose a threat to the social stability category through possible increases in inflation or heightened public unrest. Secondly, a looming energy crisis means that President Cristina Fernández may have to tighten energy restrictions or face electricity blackouts. The options available to the government at present all pose risks to Fernández'

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