For Argentina's Next President, Few Economic Options

Argentina's political landscape is coming into focus as the various political blocs prepare for the Aug. 5 presidential primary and general elections in October. Over the past few weeks, the race has narrowed to a contest between the business-friendly Republican Proposal candidate, Mauricio Macri, and the ruling Front for Victory's candidate, Daniel Scioli.

While a Macri victory would seem to bode well for Argentine businesses, the outcome of the upcoming election will have little impact on the country's fiscal policies over the next presidential term. Argentina's strained public finances and worsening dollar inflow will leave little room for the future president to pursue economic policies guided by individual ideology. Regardless of which candidate wins, the country's next leader will have to take several steps to address Argentina's economic decline, likely including loosening restrictive currency controls, improving the domestic investment climate, and settling the country's state of default with foreign creditors. Progress will be slow, and the process of reviving Argentina's economy will last beyond the next administration.