RIO DE JANEIRO, BRAZIL – Goldman Sachs published a harsh report on the Argentine economy in 2022. The report analyzes the impact of the rejection of the 2022 Budget in Congress and the uncertainty about the delayed negotiations with the IMF for the debt.
The analysis of Goldman Sachs, one of the most influential but also controversial investment banks in the world, clarifies the rating agencies’ skepticism about the agreement with the Fund that may be reached by President Alberto Fernández and the Minister of Economy Martín Guzmán.
Read also: Check out our coverage on Argentina
In its most salient paragraph, Goldman Sachs sentences: “In 2022-23, the economy is expected to face headwinds due to the accumulation of macroeconomic and financial imbalances, and growing micro distortions and inefficient allocation of resources, due to a broad set of distorting capital, financial, trade, labor, exchange rate, and price controls, amid weak policy credibility”.
In addition, the report prepared by Alberto Ramos, Managing Director and Head LatAm Economics at Goldman Sachs, states that “the IMF faces significant reputational issues in entering into a new program with Argentina, whether a light or full program, given the high risk of repeated failures”.