The most vulnerable economy in the world | Chronic

Two weeks after the presidential elections, the global financial sector has put Argentina's economy under the microscope and the result has not been positive. This Wednesday, when the Bloomberg agency made Argentina one of the most fragile economies in the world, rating agency Moodys warned of the risks this fragility poses for companies. national.

Five factors explain Argentina's top spot on the podium of Bloomberg's most vulnerable countries: a very high ratio (40.5%) of short-term external debt to GDP, a gap of 35, 8 percentage points of inflation higher than the target abandoned in September (10%), a very low ratio of international coverage reserves (only 85.9%, against 159.9% in Brazil for example), a current account deficit of 2% of GDP and low efficiency of governments.

In the last evaluation, the funding agency left our country in second place, overtaken by Turkey, which also suffered a sharp devaluation last year because of the crisis triggered by the Federal Reserve of States -United.

This term has been reversed: Argentina first, Turkey second and South Africa third. Five factors explain Argentina's top spot on the podium of Bloomberg's most vulnerable countries: a very high ratio (40.5%) of short-term external debt to GDP, a gap of 35, 8 percentage points of inflation higher than the target abandoned in September (10%), a very low ratio of international coverage reserves (only 85.9%, against 159.9% in Brazil for example), a current account deficit of 2% of GDP and low efficiency of governments.

For its part, Moodys warned that economic weakness and political uncertainty combined to increase risks for most sectors: automotive, energy, banking and construction, among others, due to the economic slowdown. But also to the provinces, for a lower collection.