Argentina Likely To Maintain Currency And Capital Controls

• Fitch Solutions expects the Argentine government will continue to rely on currency and capital controls to manage external accounts pressures due to a crisis of confidence in the peso, limited access to external credit, and diminishing reserves.
• However, the current account deficit will widen in 2021 as stabilising economic activity drives an uptick in imports.
• It forecasts a current account deficit of 1.5% of GDP in 2021, from a surplus of 0.9% in 2020, a revision of its prior forecast for a deficit of 0.5% in 2020 and 2.0% in 2021.

(Source: Fitch Solutions