They observe a drastic decline in economic activity

The economist and founding member of the consulting firm Equilibra, Diego Bossio, stressed that “inflation is Argentina’s main problem, which not only affects the functioning of the economy but also social variables” and anticipated for “the second half a drastic decline in economic activity”.

Bossio, former head of Anses, added that “we hope for this year 80% inflation like pissingor. There are no signs of an economic plan to substantially lower inflation levels ”. In this sense, he stressed that “Argentina has a very strong fiscal deficit and does not have enough dollars in its reserves to support the exchange rate. Although the liquidation of foreign currencies from agriculture was a record, the Central Bank was unable to build up reserves. With which the prospects of stabilization of the economy and lowering of inflation are not favorable ”, he stressed.

Similarly, the economist explained that “Argentina has 40% poor. It should be borne in mind that in any context of inflation above 30%, it is impossible to grow. Therefore, if the inflation rate and the lack of dollars are maintained, we see a drastic decline in economic activity for the second half of the year. “

In statements to the CNN channel, Bossio also referred to the agreement with the IMF and the government’s behavior in this regard. “If Argentina does nothing, it will not be able to meet the IMF targets. The Minister of Economy (Silvina Batakis) cited the tax issue as one of his first measures. But there is a very serious political problem, because the government has no credit with society ”.

Bossio added that “the ruling party has just lost the legislative elections, the approval levels for the presidential image and the management of the government are very low. The ruling party’s open-air interns don’t help. Political problems are added to the economic problems. Without credit to the company it is impossible to face a sustainable plan to achieve the objectives “.

“During the first half of the year, public spending was very expansive, not even reaching the 2.5% fiscal deficit target. The level of reserves is very low. The deal with the IMF did not bring credibility or trust. The country risk of Argentina is very similar to that of Ukraine, a country which, as we know, is at war, “Bossio said.

He felt “it was necessary for political leaders to put on long trousers and realize the serious difficulties that Argentina has. This implies having the ability to carry out agreements ”.