Invesco Frontier Markets ETF
Argentina (ARGT) posted a higher trade deficit for May 2017 at $642 million, mainly due to increasing imports as compared to its exports.
The leading economic index in Argentina rose 3.0% in May 2017 compared to 0.70% in April 2017.
High inflation, a fiscal deficit, and political issues have all crippled economic growth in Argentina.
Argentina’s inflation has been surging for a couple of years, spiking to around 40.0% in 2016 compared to 10.0% between 2007 and 2009.
The economic situation in Argentina was in disarray with high inflation, fiscal deficit, and a host of other issues. Then a new president was elected in December 2015.
For more than a decade, the outgoing party’s continual resistance to honoring debt led to Argentina’s exclusion from international financial markets.
Due to the higher issuance, the bid-to-cover ratio declined at July’s two-year FRN auction—the bid-to-cover ratio declined from 4.43x in June to 4.09x at last month’s auction.
You need to exercise caution while investing in frontier markets due to problems of liquidity and high concentration in the finance sector.
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Frontier equity markets typically have modest market capitalization, limited investability and liquidity, and few market information sources.