ECLAC has lowered the growth projections for the region: this year Argentina’s GDP will increase by 3%.

“It is not a crisis, but a sequence of crises” is ECLAC’s explanation for the current global context: the slowdown in growth of most economies and rising inflation at almost all latitudes, processes that will be accelerated by the impact of the war in Ukraine.

In this new world panorama, the organism trimmed growth projections for the region is expected that Argentina’s GDP will be increased by 3% this year, three percentage points less than estimated by the main local market consultants in the latest Central Bank Expectation Report.

“We estimate a growth rate of around 3%. There has been a substantial increase in investment. By 2022 it is estimated that Poverty in Argentina will remain compared to last year“, She said Mario Cimol Acting executive secretary of the organization, prior to Clarin’s question.

An economy with high inflation like Argentina will have to manage the impact of rising prices against a background of deceleration of its growth, after its GDP jumped about 10% last year.

“One of the key issues here are the shocks generated by rising international prices, rising freight and commodity prices, which have a very disruptive impact on the Argentine economy. As soon as these prices rise, they produce domestic pressures. , equality, access and so on also affect poverty“, stressed the economist of Argentine origin.

For ECLAC, Argentina has an advantage the challenge of keeping growth, investment and employment, without neglecting the battery of public measures in favor of the most vulnerable sectors. “Argentina has a number of social policies to support this kind of thing,” the official said, warning that the country needs solidify the arrival of investments.

Cimoli stressed that the investments that the country must obtain must be “an element medium and long termthat allow us to lay the foundations for a change of structure “. For the economist, the growth rates that the post-pandemic economy has shown” are indicators that we must try to maintain incentives stableso that later they do not change trend “.

The economist acknowledged that the shocks resulting from rising global inflation will inevitably hit the Argentine economy and called to “keep the helm firm on job creation and social policies”, prevent the worsening of poverty in the country.

According to the ECLAC report, presented on Monday, the internal contexts of the region exacerbate the impact of the global crisis. The agency esteems it 7.8 million people would join the 86.4 million whose food security is already at risk.

“Inflation is something it basically affects povertyand that fundamentally affects the region “, Cimoli said in his presentation to the press, in which he stated that the ability to mitigate the impact differs from country to country.” It is not the same thing to have inflation in central economies, along with powerful central banksthan in our economies, where at least central banks have a marginal role“, She said.

To contain inflationary pressures, which are fundamentally driven by supply factors, monetary policy needs to use the widest range of tools availableECLAC highlighted. This requires combining the use of the monetary policy rate with macro and foreign exchange prudential tools in order to tackle inflation while minimizing the negative effects on growth and investment.