BUENOS AIRES, July 4 — The abrupt departure of Argentina’s economy minister and lack of a clear successor could threaten to further destabilize an economy already shaken by sky-high inflation, rising energy costs and growing fears over possible new defaults on debt.
The resignation, the highest profile since President Alberto Fernandez took office in late 2019, has uncovered deep cracks in the government, which threaten to throw into disarray the country’s economic management. Inflation is running above 60 per cent and is set to rise further, while high energy import costs have shackled the country’s ability to increase depleted foreign currency reserves. Sovereign bonds have plunged toward 20 cents on the dollar.
“This is not good and confirms that there is a political problem,” said Maria Castiglioni, economist at C&T Asesores, adding it raised questions if the government would be able to take the necessary measures to exit the crisis.