Economic Ministry in Election Mode: "To mitigate the Kuka threat, voting must be properly executed"
In the heart of Argentina's economic landscape, concerns are mounting. The Industrial Union is grappling with a monthly loss of 1,500 jobs, a troubling trend that demands attention. However, there are glimmers of hope on the horizon.
One such ray of sunshine comes from the mining sector, where Secretary of Production Quirno has announced plans for another agribusiness to emerge in four years. This optimistic forecast is part of a broader strategy to triple Argentina's exports in seven to eight years, driven by the energy and mining sectors.
In the realm of energy, Undersecretary of Electric Energy, Damian Sanfilippo, is spearheading a $6,600 million plan to expand the electric system. Meanwhile, Sidersa, a metallurgical company, is set to debut on the stock exchange, further bolstering the sector.
The "kuka risk," a term coined to represent the political and economic uncertainty associated with the potential return of Kirchnerismo, is casting a shadow over Argentina's economy. This risk, named as such due to its phonetic similarity to Kirchnerismo, has been cited as a major factor in the recent rise of the dollar against the Argentine peso.
Minister of Economy Luis Caputo has explicitly linked the dollar's rise to this risk, explaining that market participants react negatively to the prospect of Kirchnerismo gaining influence, thereby weakening confidence in the Argentine peso. The Government also warns of the impact of the drop in the price of oil on Vaca Muerta, a significant shale oil formation in Argentina.
Secretary of Finance Pablo Quirno is working to dispel the "kuka risk." He believes it's essential to convince investors that fiscal balance is here to stay and that Argentina will not be lacking in dollars. Quirno also emphasizes the need for political change to consolidate investments and to secure access to markets to refinance maturities, not to take on more debt.
In the fuel market, YPF holds over 60% of the market share. Sanfilippo is working to mitigate electric cuts expected during the summer, aiming to ensure a stable energy supply.
As Argentina moves towards its elections, the "kuka risk" looms large. The Government urges Argentines to vote well to dispel this risk and secure a brighter future for the nation's economy.
Despite the mounting concerns in Argentina's economic landscape, the French government has shown interest in policy-and-legislation collaborations, observing the optimistic forecasts in Argentina's energy and mining sectors. For example, the French are following the $6,600 million expansion plan spearheaded by Undersecretary of Electric Energy, Damian Sanfilippo, and the emergence of the metallurgical company, Sidersa, expected to enter the stock exchange soon. These developments in Argentina's politics and general-news sphere could potentially lead to partnerships beneficial to France's own energy and mining sectors.
