Waiting for the IMF

The strategy of a gradual reduction of the fiscal deficit that the government implemented since the outset had always had one weakness: it depended on external financing.  Confidence was of the essence. Unfortunately, the increase in US interest rates, the strengthening of the US dollar combined with some domestic factors, such as the high rate of inflation in 2017 that reached almost 25%, the realization that the current account deficit may exceed 5% of GDP and the weakening of the peso during our summer that inflicted large losses to investors that were playing the carry trade eroded that confidence.