Morra replaced the Minister of Economy, Martín Guzmán, who is on his way back to the country after his participation in the assembly of the monetary organization.
The official said that “the most interesting question is whether liquidity is too high or if it is affecting inflation, that is, whether liquidity is the reason why we see inflation today or, the most interesting question, is how we distribute it in We need to have a better distribution of liquidity, and that liquidity can help countries like ours to have better inclusion, more growth for the whole world, more food security, and more energy security for parts of the world.”
Morra indicated that “of course, international inflation is a problem and it has accelerated. I believe that the increase in the interest rate is going to be difficult to work with, because we have a supply shock and it will mainly affect economic activity, not only in Latin America, but throughout the world”.
Later, the number two of the economic portfolio, stressed that “it is not necessarily a discussion about interest rates. Most of the countries of the world have increased their debt, and we have high indebtedness in most of the countries of the world, which will affect growth. We have to think about what we are going to do to have more growth. We have to think about the distribution of liquidity around the world.”
Morra stressed that “in terms of global inequality in a context of higher food prices, it generates logical social tensions, and we are on the verge of a global distribution crisis. We need to take decisive action to reorient and use the fiscal space that we have to protect the most vulnerable.
The official then referred to the decisions made by the Argentine government to deal with the crisis and said that “Argentina has been working actively in the process of restoring the conditions of macro stability, even in the context of the enormous shock of Covid- 19. We have had a remarkable economic recovery in the country. Last year we grew by 10.3%. We are above pre-pandemic levels in terms of activity and in the industrial sector we are even above that.”
“We have a reduction in unemployment, reduction in poverty, but, as in other countries, inflation has been higher this year and, from some point of view, there is a difference between Argentina and the rest of the Latin American countries” said the official.
Referring to the war in Eastern Europe and its economic consequences, Morra emphasized that “in addition to the terrible humanitarian consequences, the war in Ukraine implies new challenges for our economies. The first impact is on the external sector, it depends mainly on what imports and what the country exports. Some countries are net exporters of agricultural products, but others, like Argentina, import some parts of the energy, or are net importers of energy.”
Finally, he made a call to act in the face of the crisis from a continental point of view and said that “thinking about how Latin America is going to be part of the rest of the world is a strategic issue.
We believe that Latin America can guarantee food and energy security to other regions of the world.”
Source: Ambito
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