| Since July, a combination of interest rate volatility and the electoral outcome in the Province of Buenos Aires has generated renewed tensions in financial markets. Higher rates, exchange rate pressures and weaker confidence have led to a slowdown in economic activity. |
 Global growth is moderating due to increased protectionism, stricter immigration policies, and heightened geopolitical tensions. The slowdown in the U.S. will allow the Fed to cut interest rates in 2026. The risk map tilts toward more adverse scenarios amid global fragmentation and threats to the Fed’s autonomy.The Argentine economy lost momentum in the second half of 2025, widening performance gaps across sectors. Formal employment has stagnated, while informality has increased, cushioning unemployment but deteriorating job quality. Real wages are beginning to recover, albeit unevenly.The fiscal balance remains solid, supported by moderate spending and firm revenues driven by activity and external trade. A primary surplus of 1.6% of GDP is expected in 2025, exceeding the IMF target.The elimination of LEFIs and the electoral results in Buenos Aires Province intensified financial volatility, leading to higher interest rates and increased pressure on the exchange rate. We expect real rates to remain positive and the spread to narrow gradually. The exchange rate is likely to stay near the upper band, supported by the U.S. Treasury’s backing. |
Visited 20 times, 1 visit(s) today
Latin American Real Estate News Options
If you value being well-informed and want to receive targeted real estate and Investment News by email, join 39,400 plus subscribers to our English, Spanish, or Portuguese posts. It is a valuable resource for new and experienced investors.
Â
Founded in 2004, GTSA began as a single office in Buenos Aires. Since then, it has grown into a vibrant regional network, providing professional real estate marketing services to clients in AR, BR, CL, PY, PE, and UY.
