Argentina’s stock market recovered at 10 percent on Tuesday, August 13th, after suffering a huge decline due to the shocking defeat of the current President and market-friendly Mauricio Macri, reported AFP.
Buenos Aires’ stock Exchange Merval Index closed Tuesday up 10.22 percent after declining 37.9 percent on Monday due to Marci’s defeat to a leftist opponent.
Argentina headed to the ballot boxes on Sunday August 11th, in order to give a direction to the primary for the presidential election race in October, Reuters reports.
The voters have the choice between the two leading presidential candidates, current President, Mauricio Macri, and his main competitor, Alberto Fernandez. Argentina’s main political parties have already released their nominations, and the first round of primary elections, which is called PASO in Argentina, can be seen as a first indicator of what is voter sentiment and likely future direction.
The outcome of the elections is of huge importance to Argentina, which faces an ongoing economic crisis with 55% inflation.
The choice between Macri and Fernandez comes along with what different economic policies and measures that would be taken. With the re-election of President Macri, Argentina would continue to maintain austerity measures. Macri has negotiated cuts in public spending that amount to $57 billion with the International Monetary Fund in 2018.
His competitor, Fernandez, promises to change to more interventionist economic methods, and has among other policies, announced access to free medicines for retirees, and better salaries for workers.