Argentina's "Macrisis" continues
President of Argentina Mauricio Macri. Photo: Mario De Fina/NurPhoto via Getty Images
Argentina's economy is falling apart, further evidenced by its second straight quarter of negative GDP growth, but no one has bothered to tell its Merval stock index, which has risen almost 18% in June and 32% year to date.
The big picture: The country is firmly in a recession, but analysts say the improved prospects of market-friendly President Mauricio Macri, who has overseen the country's "Macrisis," winning re-election are buoying the market this month.
Driving the news: The country's GDP fell 5.8% in the first quarter after a 6.2% fall in the fourth quarter of 2018.
What's happening: Under Macri Argentina has seen record high inflation and poverty rates and its peso currency has fallen to what is by far the lowest level on record.
- However, his opponent in October's presidential race, Alberto Fernández, is running with former president Cristina Fernández de Kirchner, who investors worry could lead the country into yet another default on its sovereign bonds and end its record $57 billion IMF bailout program.