The 5 factors that led Argentina to the top of the emerging vulnerability ranking

In the latest update, the Argentinian economy put Turkey in second place, which has so far held the podium. South Africa remained in third position.

Bloomberg Vulnerabilities Ranking July 2019.jpg

Bloomberg

Bloomberg's description coincides with recent warnings from risk rating agencies of Moody's and Sandard and Poor's because of the weakness of the national economy.

According to the New York company founded in 1981, five factors explain the transfer of Argentina on the podium of the most vulnerable countries of Bloomberg:

1. Very high ratio (40.5%) of short-term external debt to GDP
2. A gap of 35.8 percentage points of inflation compared to the goal abandoned in September (10%)
3. Very low ratio of international coverage reserves (only 85.9%, against 159.9% in Brazil for example)
4. A current account deficit of 2% of GDP
5. Low government efficiency.

Bloomberg Argentina Risks.jpg

Bloomberg