Tuesday, May 30, 2023

Argentina sees its crisis compounded by elections and drought

Economic condition of Argentina Doesn’t seem to be improving. Since last year, the South American country has been presenting a clear upward trend in its inflation rates, which reached the point of closing consumer prices for April, with 108.8% per annum.

He JP Morgan Chase, America’s largest bank, assured that Argentina would experience inflation with recession this year. To this it is added that the Chamber of Commerce of the United States of America) in Argentina indicated that this country is on the verge of an economic crisis.

(The US continues skating to raise its debt ceiling).

against it, Marina Pera, Argentina Senior Analyst at Control Risks points out that the situation in the South American country will worsen in the coming months, noting that inflation and public debt are chronic problems that are not consistent with any one government.

,One of the reasons for the situation is the delay in macroeconomic reforms”, said the analyst.

(The country where food is a luxury).

He is the strategic partner of control risk for financial matters oxford economic An inflation rate of 121.5% is projected by the end of the year, with an economic contraction of 1.6% in 2023. In short, in addition to high consumer prices, another problem affecting this country is a possible recession.

According to Claudio Caprarulo, director of the Analytica consultancy in Argentina The economy presents several imbalances, also added to the drought that affects the agricultural sector, which is the main producer of the dollar.

(Argentina will raise its interest rate again).

,Between now and December, the most we can ask of the current government is to avoid another setback that will lead us to the worst. The question is how the next government will solve the huge problems we are going through, as a stabilization plan is essential, but it can take different forms and its success is not guaranteed.Caprarulo said.

The director noted that the Argentine economy is characterized by advances and setbacks that reflect the impossibility of politics reaching a consensus to establish a sustainable economic model over time., she is serious”The main reason, reinforced by several economic policy errors and in recent years, also by external shocks such as pandemics, wars and droughts in Europe”, which exacerbates the economic fallout.

(Inflation rose in April in Spain and Argentina).

A turn on Santiago Manoukian, economist and head of research at the consultancy Ecoletina He added that the situation in Argentina is undergoing such an inflationary process that it will deepen this year, reaching “reinvestment”.

this fact, “It will be marked by a recession determined by the direct and indirect phenomenon of declining agricultural harvests as a result of the severe effects of drought, greater restrictions on imports, and deepening of the contractionary bias of fiscal and monetary policy.“, he explained.

He pointed out that GDP contraction will co-exist with volatile inflation and the uncertainty of the electoral transition.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news


Please enter your comment!
Please enter your name here