The economy will grow by 4% and will have an inflation of 94.5% in 2022, according to the Budget project for next year that the Government recently sent to the National Congress in the midst of a delicate financial crisis.
Economists and analysts give their opinion on the current situation in the country, whose government ratified the macroeconomic goals set with the International Monetary Fund (IMF).
Dollar today and blue dollar today: the minute by minute price of Monday, September 19
The rate hike “confirms our expectations (…) of transition towards a scenario of positive real rates, and its negative impact on interest coverage of the Argentine corporate sector in the coming quarters. The reference annual effective rates amount to almost 107%, 200 basis points above inflation in the last annualized quarter,” said Pablo Artusso, an analyst at Moody’s Argentina.
“Raising rates (of the BCRA) to 75% will have a negative impact on the level of activity. But it is of little use to control inflation if the issuance of pesos is reduced to a minimum,” explained financial analyst Christian Buteler.
“The intention is to moderate the inflationary situation. For now, that is pending. The idea is to continue lowering the (exchange rate) gap and as it compresses, everything will be put in order and inflation should go down and improve purchasing power,” said the director of the BCRA Agustín D’Attellis, in statements to the press.
For Adcap Financial Group, “the ‘soybean dollar’ paid off” and “with purchases expected until September 30, net reserves could reach 3.5 billion dollars, far from the 6.4 billion dollar target with the IMF.”
“Inflation does not exist tomorrow” when “the main debtor of the economy is the State”, added the economist Diana Mondino in journalistic declarations. “The distortion we have in relative prices has to be corrected.”
Finally, Econviews sowed doubts about the 2023 Budget: “The government resorts to the old formula of underestimating inflation to have a flexible budget (in 2023). The fiscal objectives are in line with the IMF’s goals, which does not mean that they will be met.”
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
