U.S. asks Argentina to be patient with economy under Macri
BUENOS AIRES, Aug 4 (Reuters) - U.S. Secretary of State John Kerry on Thursday urged Argentina to be patient with the pace of economic progress under President Mauricio Macri, who took office late last year promising an influx of investment that has yet to materialize.
In his first visit to the country as America's chief diplomat, Kerry addressed growing discontent voiced by Argentines over an economy beset by stagflation.
"It's not all going to change overnight," Kerry told a group of local business leaders.
"Getting rid of bad habits takes a little bit of time and investment takes a little bit of time to take hold and begin to create momentum," he added. "But I am 100 percent confident, as is President Obama, that Argentina is on the right course. People need to be patient."
Macri's market-friendly policies follow eight years of heavy state control of the economy under previous leader Cristina Fernandez. "A sea change is taking place here," Kerry said.
Argentina's economy is expected to shrink 1.3 percent this year, according to a central bank poll of analysts. The government has not made a forecast. Macri has promised that the economy will turn around in the second half of this year.
Kerry was set to meet with his Argentine counterpart Susana Malcorra to discuss bilateral relations and regional issues including the political crisis in Venezuela.
Fernandez supported Hugo Chavez's self-styled revolution in the oil rich country, and the administration of his protege, President Nicolas Maduro. Macri has emerged as one of the region's leading critics of Maduro, accusing him of unjustly jailing opposition leaders.
From Buenos Aires Kerry was set to go on to Brazil where he will attend the opening ceremony of the Olympics on Friday.
Headwinds from Argentina's recession-racked northern neighbor are not helping Macri's investment push. Brazil, the region's biggest economy, has been paralyzed by corruption scandals and political turmoil after the suspension of President Dilma Rousseff from power. (Reporting by Hugh Bronstein; Editing by Phil Berlowitz)
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