check tax collection fell 25% in real terms in May.” He explained that this tax is the one that best anticipates the economic activity numbers that are published 2 months later and accompanied the message with the hashtag #Hyperrecession.
The Economist Alfonso Prat-Gay, who is former Minister of Finance and Public Finance of Mauricio Macri, spoke of a situation of hyper recession in Argentina by Javier Milei. He did so through his social network account X (ex-Twitter), where he warned about the economic direction of the Government.
Prat-Gay warned in his tweet that the drop in collection of the check tax that was seen in May of this year is a clear anticipation that economic activity will not grow. And, as he indicates, “check tax collection fell 25% in real terms in May.” He explained that this tax is the one that best anticipates the economic activity numbers that are published 2 months later and accompanied the message with the hashtag #Hyperrecession.
The former official pointed out that this is the largest drop in 20 years and even exceeds the situation seen with the collapse in sales during the pandemic, which was seen in 2020.
A background to Prat-Gay’s tweet
It is not the first time that Prat-Gay speaks of “hyper recession.” He had already done so on May 22 in another post after the National Institute of Statistics and Censuses (INDEC) reported that the economy had fallen 8.4% in March and accumulated a drop of 5.3% in the first quarter. of the year.
At that time, Prat-Gay had warned about the risks of applying an adjustment as strong as the one being implemented. And he wished “that the authorities have considered these second round effects and prevent the phenomenon from spiraling, as happened when an attempt was made to improve the accounts through adjustment.”
At that time, the former official had indicated that “History shows that the improvements that are sustained are the virtuous ones, not the vicious ones.”
Source: Ambito
