Argentina's Rise in the Global Economy: Macri's Reforms and G20 Presidency

In this segment, Fernando Rodriguez highlights Argentina's emergence as the Group of Twenty G20 president following a significant victory in the congressional elections for President Mauricio Macri and his economic reform program. This comes amidst an environment where globalization is being questioned due to the Trump administration's stance on free trade and Brexit.

Following years of isolation under Kirchner's presidency marked by economic chaos, Argentina has made a remarkable comeback to regn its status as a global player in the G20 framework, with the promise that it will advocate for market-frily policies at this time when the world needs strong proponents of capitalism.

In the aftermath of Macri's election toward the of 2015, his administration swiftly enacted a reform program med to stabilize the economy by abolishing currency restrictions and lifting barriers on capital flow, devaluing the Argentine peso, scrapping food export taxes, resolving the dispute with notorious bond holders, amongst other reforms. This symbolic move allowed Argentina officially return to international markets in August 2016 when it successfully sold $AUD1.25 billion worth of sovereign bonds.

Since then, Macri's government has pushed through further structural changes including elimination of import restrictions, liberalization of the exchange rate and cuts on subsidies with the m of attracting both local and foreign investors to stimulate job creation-a central part of his strategy for poverty alleviation in Argentina.

While the initial macroeconomic measures have led to a surge in infrastructure project ters by nearly 200, negotiations are ongoing with Peronist trade unions. A notable agreement was struck in mid-September, where Macri secured funding for universal healthcare with an investment commitment of $AUD8 billion from the Social Solidarity Fund controlled by these same unions.

As part of its broader transformation towards a business-frily culture and transparency to international investors, Argentina is now witnessing signs that its economy might experience robust recovery this year with an estimated growth rate of 2.8. The International Monetary Fund IMF predicts that after predicting a contraction of 1.5 in the previous year, Argentina's GDP could grow by 2.8, according to Bloomberg.

In summary, Macri's administration has embarked on a national reform program med at transforming Argentina's underlying economic systems and operations. This move is currently generating growing interest from international investors who are optimistic about the nation's rebounding economy. Although some time may pass before Argentines start experiencing the full benefits of these reforms, this represents an important shift that could set Argentina's economy on a path for accelerated growth in 2018.

Fernando Rodriguez is an economist with expertise in international trade and currently leads Swann Global South America practice while serving as Director at Magellan Australia.

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