Despite reviewing the goal with the IMF, they warn of a short blanket that will impact activity

Despite reviewing the goal with the IMF, they warn of a short blanket that will impact activity
Despite reviewing the goal with the IMF, they warn of a short blanket that will impact activity

In this regard, the report highlighted that while in the first two months of 2022 “CIARACEC’s export liquidation reached 4.94 billion current dollarsin the same period of 2023 the income of foreign currency through this channel was reduced to 1.57 billion, a decrease of almost 3.4 billion dollarsattributable to the seasonal change that triggered the ‘soybean dollar’”.

“Even though Argentina does not have to comply to the letter of what was initially committed in terms of reserve accumulation, the expectations of economic agents will continue to be affected by the fragility of the Central Bank’s balance sheet, with external assets that are contracting and liabilities in local currency that are expanding at full speed”, he stressed.

In this sense, from IERAL they assured that “The ‘short blanket’ will continue to restrict authorizations to import and, therefore, affect the level of activity due to the lack of supplies and parts”. “Towards the end of 2022 we had estimated that non-energy imports in 2023 could be falling by 10% year-on-year, and all the developments that have occurred in the last two months are not enough to change this scenario, which obviously entails a marked adjustment in the level of activity” .

While waiting for official data on the new guidelines of the program agreed with the IMF, the study estimated that the relaxation of the booking goals ‘defaults’ should be avoided on this level by the time of the first quarter review. “However, this punctual fact makes it difficult to broaden the horizon for making economic decisions in this election year. The external imbalances of the economy are a reflection of the imbalances in the macro, and what has been observed in recent quarters is rather a search for financing, but not for correction, of these inconsistencies”, the study remarked.

“In 2023, not only will there be a decrease possibly higher than 13.0 billion dollars in agricultural harvest by climatic factors; there will be a negative balance in credit operations with agencies while, in external commercial loans, the figures of 2022 cannot be repeated, beyond what can be achieved in the negotiations with China and Brazil”, they added from IERAL.

“For this year, The fact that the IMF agrees to relax the reserve targets does not contribute much to expectations. The numbers of the external sector are so tight, that even when the reserve accumulation goal is only testimonial, in any case, there will not be enough foreign currency to finance imports of the level of those registered in 2022. The lack of inputs and parts has already begun to affect the operation of productive activities and there is no way to prevent this phenomenon from dominating the 2023 scenario,” the report concluded.


When analyzing how the level of activity may evolve this year, after the EMAE registered an annual growth of 5.2% in 2022the consultants that participate in the REM projected a real GDP variation of 0%reducing its forecast with respect to the value contemplated in the previous survey by 0.5 pp

In this scenario, the General Activity Index prepared by the consultant orlando ferreres registered in January an annual growth of 1.8% and a contraction of 1.2% in the seasonally adjusted measurement compared to December. “It is worth clarifying that the measurement of the first two months of the year is subject to greater volatility than that of the rest of the year, so the drop in the first month is not representative of the trend that we anticipate for the rest of the year, which is an activity with a slightly negative trend”, they highlighted from the firm.

For his part, since ecolatin pointed out that “one of the main factors that will have a negative impact on GDP will be the drop in agricultural production volumes as a result of drought and frost (early and late)”.

“In addition, the management scheme for scarce foreign exchange will be maintained, where import controls will continue (or even increase), putting a limit on the potential expansion of production and consumption, via complications in the supply of inputs and goods. finals ”, they detailed from the firm.

Source: Ambito

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