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Economy / Argentina

Fiscal Crunch Time Fast Approaching

February 2011 | Economic Analysis

BMI View: Argentina's fiscal accounts will take a turn for the worse in 2011 as pre-election spending and the prospect of lower revenues from export taxes weigh on the government coffers. Beyond the October vote, we caution that the country's public accounts sit at a crossroads: a continuation of the current policy mix would further threaten fiscal stability, while the fiscal consolidation that would likely accompany an opposition victory would in turn weigh on real GDP growth over the medium term.

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