Moody's: The Argentine economy will continue to be exposed to volatility due to political risk

The Argentine economy will continue submitted to cimbronazos until they begin to define the candidatures and the platforms for the October elections declared Gabriel Torres, senior credit officer of the rating agency Moody & # 39; s.

After a brief calm during the first six weeks of 2019, the Instability returned to Argentinean markets following political uncertainty and persistent negative economic data. The country risk reached its year high on Tuesday.

"In regards to we do not know who will winand that among the options, there is someone who wants to make a radical change, the political risk will be high, "Torres said. volatility will not disappear this year".

President Mauricio Macri He is the only one to have confirmed his candidacy. The former president Cristina Fernández de Kirchner and the former minister of the Peronist economy Roberto Lavagna they could show up but they have not made any announcement yet.

"I do not know what are they going to propose Lavagna or Cristina if they were to become candidates, I want to see him because until now, they were not clear, "said Torres in an interview with Reuters.

"Insofar as people are afraid to return a "trap" and he can not take his money from the bank he will want buy dollarshe added, referring to Cristina Kirchner's control in her government to stop a currency leak.

Currently, Moody's believes that this year the The Argentine economy will shrink by 1.5%, with inflation of 35%. Torres said that if the candidates agreed to continue the reforms, the economy would be better.

"Anyone who wins in Chile, Peru or Uruguay, you do not think you can change the access to financingor change the role of the central bank. That's what's left over waiting in Argentina"he said.