Hard Struggle Ahead

"Latin America is very sensitive to the world economy, whose slowdown this year will increase the volatility and the uncertainty in the financial sector," says Daniel Titelman, chief of the economic development division of the UN Economic Commission for Latin America and the Caribbean (Ecalc). An expected drop in oil production threatens additional downward pressure: a consequence of the government's failure to invest in Pemex and uncertainty regarding approval of the United States-Mexico-Canada Agreement (USMCA), the rewrite of Nafta, by the US Congress. Perhaps more important to investors concerned about Argentina's future as a destination for capital, however, will be the results of the October presidential election, in which Macri is expected to face Senator Cristina Kirchner, a left-leaning former president.