IndyCar News: Series will have to deep-six race idea in Argentina (3rd Update)

The announcement for an IndyCar race in Argentina at the Autodromo Termas de Rio Hondo road course did not happen back in August as expected, and the chances of it materializing are dwindling.

–by Mark Cipolloni–

Some are prepared to say, “stick a fork in this race, it’s done.”

Why?

When in doubt, follow the money.

In December, the government said it would slash the value of its currency, the peso, by more than 50 percent against the US dollar, thereby making the race now twice as expensive for the Argentinians.

With the election of Argentine President Javier Milei, the chances of getting government money to pay for the race has taken a hit.

Latin America’s third-biggest economy is facing dire economic challenges after decades of debt and financial mismanagement, with inflation surpassing 160 percent year-on-year and 40 percent of Argentinians living in poverty.

Argentina, which ushered in a new government in December, is battling likely stagflation on the horizon, a toxic mix of triple-digit inflation and recession that will likely squeeze people and push up the poverty rate, already at over 40%.

The economic picture also likely darkened further at the end of the year, analysts said, with the political uncertainty that surrounded the October-November elections and recent sharp devaluations of the peso currency.

Libertarian Milei has taken several steps to cut public spending and overhaul the economy. He recently presented a legislative package to Congress, seeking to privatize more than 40 public companies and impose restrictions on the right to assembly and demonstration.

In December, the government said it would slash the value of its currency, the peso, by more than 50 percent against the US dollar and announced a raft of other austerity measures, including sweeping subsidy cuts, cancellation of tenders for public works projects, and plans to axe nine government ministries.

“The new administration is already implementing an ambitious stabilization plan, anchored on a large upfront fiscal consolidation, along with actions to rebuild reserves, correct relative price misalignment, strengthen the central bank’s balance sheet, and create a simpler, rules-based, and market-oriented economy,” the IMF said.

Economy Minister Luis Caputo announced a raft of other austerity measures, including sweeping subsidy cuts, the cancellation of tenders for public works projects, and plans to axe nine government ministries.

Jimena Blanco, chief analyst with risk consulting firm Verisk Maplecroft, said Milei’s government was trying to temper an otherwise guaranteed economic crash landing.

“He promised a very tough pill to swallow and he’s delivering that pill,” she said. “The question is how long will popular patience last in terms of waiting for the economic situation to change.”

The only thing likely to save this race now is a ‘rich sugar daddy’ willing to lose millions of dollars a year.