He is one of the most listened to economists in the city of Buenos Aires and gave his opinion on what the keys are to begin to leave the crisis behind and for Argentina to take off.
Claudio Zuchovicki He is one of the most listened to economists in the city of Buenos Aires and gave his opinion on what are the keys to begin to leave the crisis behind and for Argentina to take off.
“Here we had to attack the inflation. The Government came to do it and one of the consequences, or side effects, of defeating inflation is recession. How to get out of it? One part, hopefully it will be voluntary with political agreement, with a Base Law that allows the real economy to be unlocked,” he stated in his column on the TN channel.
“The other is that for you to get out of stagnation, the GDP has to grow. And for this, either consumption, public spending (not from the State), investment or exports and imports have to grow,” he immediately added. .
In this sense, the specialist pointed out that consumption is difficult to grow, unless the market drives it through credit. “For example, the competition of banks is not only mortgage lending,” he noted.
Then, he distinguished public spending made by the State from that of public works. “They are two different things,” he clarified and demanded an Investment Law.
“You need genuine investment to come and save all that money, which the private sector can do. Many of the works are done by the private sector, against extension of contracts, against some tax that you do not pay by some law at a time , or whatever. Well, this is the first point, but for that you do need a Base Law because no one is going to invest if there is no law behind it,” he explained.
Source: Ambito
