The specialist, one of those most listened to by Milei, also focused on other key aspects: highlighted the increase in collection above inflation, although he questioned the Income tax as an indicator of economic activity. On a financial level, highlighted the surpluses obtained in the first months of the year.
The current economic policy continued, is the fiscal policy, with which “has no chance of loosening”: “[Milei] It does not have governors, it does not have mayors, it is clinging to fiscal balance like on a ship in the middle of the storm. If it does loosen, bye, period. Reason why there is no need to have a devaluation jump”, he emphasized.
In relation to this, he mentioned the level of activity, and maintained: “The data goes up to April. It was better than March, but we are looking for a comeback. Focusing on the year-on-year percentage is nonsense. In May and June the situation is more balanced. Some are selling more, others the same. A great heterogeneity,” she said, adding that there are those who claim that June is better than May, and those who say it is the other way around. “History says that pessimists end up making mistakes because they underestimate”, he stated.
The economist also pointed out another of his concerns regarding the Government’s economic direction: the exchange gap.
“The exchange rate delay suggests that action must be taken in some way, but financial currents are not corrected with devaluation, because that has a direct impact on prices and (Luis) Caputo knows it“, he pointed out about the Minister of Economy.
In this sense, De Pablo said that A devaluation jump would imply a new rise in inflation, which would be close to that of January, which was 20.6%. and that the Government has managed to drop to 4.2% in May, the lowest figure in two years, a clear warning for the President to take note and rule out this possibility that, in recent days, gained strength and Caputo himself came out to clear up doubts.
Juan Carlos de Pablo: “Getting out of the stocks is not a priority for the Government”
In another part of the talk, the economist asserted that the exit from the stocks “is not a priority” for the Government. “At some point it will happen, but today they are in no rush for this exit,” he revealed, in addition to ruling out that the International Monetary Fund (IMF) will pressure Milei to move forward in that direction. “The Fund can only squeeze you if it is going to send you fresh money, and for now it is not going to send it.“he concluded.
Finally, De Pablo pointed out certain improvements in the economic activity indices, but asked to analyze the data with caution.
“The data shows that April was better than March, but we are looking for a turnaround. Focusing on the year-on-year percentage is nonsense. In May and June the situation would seem to be more balanced. Some are selling more, others the same. There is great heterogeneity“he insisted.
Source: Ambito
