Argentina posts first current account surplus since 2009

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Argentina's National Institute of Statistics and Censuses (INDEC) reported this week that the country registered a current account deficit of $1.372 billion in the fourth quarter - but closed 2020 with a surplus of $2.985 billion, its first since 2009.

The surplus included a $12.53 billion trade surplus, offset by foreign debt interest payments of $11.25 billion - a 35.3% reduction largely due to the successful refinance of $66 billion in foreign debt by Economy Minister Martín Guzmán in August.

The balance of payments report likewise showed the country's public foreign debt shrinking by $7.67 billion in the first 9 months of 2020, to $189.7 billion - the first net reduction since 2013.

Argentina's public foreign debt had doubled to $197.4 billion during former President Mauricio Macri's 2015-19 tenure, leading to a record $57 billion bailout from the IMF - reportedly at the behest of former President Donald Trump.

The Argentine economy meanwhile declined in 2020 by 9.9% - its worst showing since the 2002 post-convertibility crisis.

Early lockdown measures in response to the ongoing coronavirus pandemic led to a sharp recession in the 2nd quarter (-19%), though GDP has recovered steadily since May to within 1.3% of pre-pandemic levels by January.

At: https://translate.google.com/translate?sl=auto&tl=en&u=https://www.politicargentina.com/notas/202103/36295-con-pandemia-pero-sin-macri-el-indec-demostro-con-datos-que-en-2020-se-redujo-fuerte-la-deuda-externa-bruta.html

Argentine Economy Minister Martín Guzmán points to data during a recent press conference.

The center-left Alberto Fernández administration has prioritized debt sustainability following a doubling in public foreign debt under his right-wing predecessor Mauricio Macri.

Argentina is currently in talks with the IMF to refinance $45 billion borrowed by Macri - part of over $100 billion in additional net foreign debt during his 4-year tenure.

Guzmán noted that while he hoped to sign a fresh agreement with the IMF in May as originally planned, that date was flexible.

[Warpy]

1. Gee, all they had to do was kick out the authoritarians and put in a lefty

Funny, it always works out this way. Right wingers just can't manage money.

They can't govern, either.

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2. And like Trump, Macri came in (in '15) boasting of "the best team in 50 years" and of being "pros"

What happened? He deregulated finance and gave the wealthy and big business big tax cuts.

As you can imagine, for the most part these proceeds were first gambled on high-risk investments ('16/'17) - and then dollarized and offshored ('18/'19), leaving everyone else with the debt.

No wonder he and Trump are such good pals.