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Argentine economists predict easing inflation as new government prepares to take reins

Credit: REUTERS/MARIANA GREIF

Argentine economists predicted inflation of 54.6% in 2019 in a central bank monthly poll of analysts released on Tuesday, 1.1 percentage points lower than expected in a previous survey.

By Walter Bianchi

BUENOS AIRES, Dec 3 (Reuters) - Argentine economists predicted inflation of 54.6% in 2019 in a central bank monthly poll of analysts released on Tuesday, 1.1 percentage points lower than expected in a previous survey.

The survey, which was conducted in the midst of an acute financial crisis and just over a week before leftist Peronist Alberto Fernandez takes over as president, also saw predictions of economic stagnation ease. Analysts forecast gross domestic product shrinking 2.8 percent this year, compared to an estimated 3% contraction in the previous survey taken last month.

The 46 analysts who participated suggested inflation would ease to 43% by 2020, and forecast an average nominal exchange rate for December of 63 pesos per dollar, from the previous 65 pesos.

Argentina's incoming cabinet has already been chosen and will be revealed on Friday, Fernandez said on Tuesday.

As the country and markets watch closely for the make-up of the Peronist's core leadership team, the key economic roles are still under wraps. Talks are ongoing about how those will be structured, a spokesman for Fernandez said.

(Reporting by Walter Bianchi, writing by Aislinn Laing, Editing by Rosalba O'Brien)

((Aislinn.Laing@thomsonreuters.com; +56 223704250;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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