After a crushing defeat for Mauricio Macri in the primary elections on August 11th, where he obtained 32% of the votes against 48% secured by the Peronist Alberto Fernandez and the populist former president Cristina Fernandez de Kirchner, he still believes he is not quite beaten yet.
Primary elections were viewed by many as a referendum on Macri’s painful economic reforms. Few think he can overturn a 16-point deficit in so little time, but the government hopes that recent signs of an economic revival would be enough to encourage voters to stick with his free markets reform agenda, despite a recession and 55% annual inflation. Argentina has imposed currency controls in an attempt to stabilize markets as the country faces a deepening financial crisis. The government has restricted foreign currency purchases following the sharp drop in the value of the peso. To prevent capital flight, the government may tighten once again currency controls in the weeks leading up to the election, a measure that might remain in place after the vote.
The current real estate market is recessive. Argentina is back again at the stage where there is a high supply of properties for sale and low supply of properties for rent. Due to the devaluation of the currency and high inflation rate, landlords are not easily accepting payments in Argentine pesos and are requesting payment is US Dollars. For Argentine savers and investors, the US Dollar is the only source of protection against economic uncertainty. When payment of rent in Argentine pesos is agreed upon, a rental increase of 20% every six months is applied and stipulated in the lease.
Just over a month before Election Day, the anxiety is trickling down into the everyday life of ordinary Argentines. The tone of the final sprint of Macri’s campaign, which includes two presidential debates next month, will play a key role in how the public sees the start of the new administration.
Please contact our Argentina member, LABS Relocation, for more information.