In dialogue with Channel Ethe economist Edward Jacobs He assured that the improvement in Argentine assets reflects a change in expectations for 2026 and a sign of greater economic normalization.
The rise of up to 3% in Argentine stocks on Wall Street has reignited optimism in financial markets. For Jacobsthis movement is not a coincidence. “Undoubtedly, with forecasts for 2026, Argentina is breaking our fateful tendency to stop and go” he said, explaining that the country is emerging from decades of interrupted growth cycles.
The economist emphasized that despite the negative forecasts “The year 2025 will end with growth of between 4.5% and 5%“and that private and IMF forecasts expect a similar scenario for 2026.”It would be the first time in almost 19 years that we grew two years in a row“, he emphasized, which is an important signal for investors.
Accordingly JacobsThe passage of the 2026 budget by a large majority in Congress was a turning point. “It was a very strong signal, very interesting, that the markets knew how to interpret it well.“, he claimed, in contrast to the conclusion in 2025, which will be characterized by institutional tensions and crossed vetoes. In this new scenario, he added: “The Argentine economy is very cheap in terms of stocks and bonds“, which promotes a financial “catch-up” process.
Macro ordered, micro on the rise
When asked about the perception that the macroeconomy is improving faster than the everyday situation, Jacobs He was categorical: “The macro and the micro are the same“. Although he acknowledged that “Not all of Argentina’s 47 million people are doing well“He reminded us that the country is dragging on.”40 years of crisis and catastrophe“, with high levels of poverty that cannot be reversed overnight.
It is crucial for the economist to look at the data. “There are no sensations, there is data, and the data says things are getting better“, he explained. In this context, he explained that the economic program rests on one main pillar: “The heart of the model is the budget surplus“, a necessary condition to maintain relations with the IMF and international markets.
Reserves, debt and financial credibility
One of the main demands of the International Monetary Fund is the creation of reserves. Jacobs defended the official strategy by pointing out that “this government has bought reserves like no other,” although he clarified: “He couldn’t keep her because he has to pay due dates.“For him, meeting financial obligations is a strength of the current model:”All due dates are paid“.
Furthermore, he stated that “There is no debt problem“provided that”Argentina’s external debt is extremely low” in international comparison. The real challenge is having to pay capital and interest without being able to fully refinance these obligations, which limits the creation of reserves.
Looking ahead to 2026, Jacobs expressed confidence that the recovery in lending will boost consumption and activity. “As credit begins to consolidate again, the growth will be felt much more clearly“, he concluded, reinforcing the idea that the market’s optimism has real foundations.
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