While the market debates whether the “plan to arrive” addressed by Economy Minister Sergio Massa will arrive at PASO next August without major jolts, two economists saidThursday a difficult diagnosis. “The economy is in shambles, but so is politics”, said the president of Abeceb, Via Mariana. His colleague, the director of UCEMA Diana Worldagreed: “The short term of the people is very different from that of the government”.
“When you have everything tied up with thread, as is the case now, the short term is the day to day”Camino said when asked about the scenario for the coming months in the country. “There is a concrete milestone which is to get to the elections, actually STEP, and then, in October. (We have to see) if the famous plan arrives and the government can manage it or not,” he said referring to le negotiations that the Government enters into with the Monetary Fund to advance disbursements and avoid the fragile situation of reserves.
“You have to watch it every day. It is an economy that is in a process of declineoutput, shall we say, very distorted,” Camino said.
Meanwhile Mondino has assured that it should be one of the first provisions of the next government starting from 10 December “less expense”
Both participated in a panel moderated by the president of Mercer Argentina, Cecilia Giordano, in a meeting that the human resources consultant organized at the Metropolitan Design Center.
“Clearly, a corresponding price adjustment is necessary. that not confessing it directly is the complicated way of putting it rates must have gone up a lot. We have to change the level of public spending abruptly, because you can’t have a deficit like the one we have now, so, so, so high,” Mondino said, noting that social plans do not represent as high a level of government spending as subsidies to the houses.
“Plans have a terrible effect on the economy, which is that prevents the real wage increase of those who are working. Because you say: “All these other people are out of work, because I raise the salary of those who want or can work.” real jobs will only generate “tax lowering”.
“The government has to lower the fiscal deficit, the subsidies. You have to see where you can start working towards that goal of normalizing public finances. What you have to do is stabilize the macroeconomy,” Camino agreed.
“You have to give it a general picture of correction, of relative prices, of clear rules of the game, of normal conditions so that the economy can start working. And this implies being honest that the exchange rate is behind. Not having this amount of sectoral devaluations that there are,” the economist said.
Source: Clarin
