The president of the Confederation of Business Chambers pointed out that the change of government on the neighboring shore could bring “positive” things for the country.
He president of the Confederation of Business Chambers (CCE), Diego O’Neillmaintained that Argentina could correct the price gap with Uruguay “in the medium term”, based on a potential macroeconomic reorganization during the new government of the new Argentine president Javier Milei.
The business leader made these statements this Monday at a press conference, within the framework of the CCE Assembly, where the macro balance for 2023 and the economic projections for next year were presented.
According to O’Neillin the local business community there is a “positive expectation” after the assumption of Mileisince the libertarian economist represents “a change”, from the Uruguayan perspective, to what was the previous administration of former president Alberto Fernández.
“There are expectations that in the medium term the imbalance in prices in Uruguay and in Argentinabecause that greatly harms our country, commerce, the macroeconomy, revenue and undoubtedly the flow of tourism,” said the businessman.
As for the Mercosurpointed out that this same change in power could imply the arrival of “positive things” for the Uruguay and its intentions of commercial opening towards the world.
“On the visit to China It was seen that the possibility of an FTA (Free Trade Agreement) is certain,” he indicated O’Neillbut added that the agreement is very “conditioned” by the position of the neighbors (Argentina and Brazil), who were “very critical” of the possibility that Uruguay advance in bilateral negotiations outside the economic bloc.
The CCE observes a “macro imbalance” and “governance challenges” in Argentina
In its regional projections, the CCE observes a “macroeconomic imbalance” and “governance challenges” for the Argentina throughout 2024.
The report highlights that the exchange rate will remain “unstable” on the other side of the Río de la Plata, so Uruguay It will continue to be expensive for Argentines when it comes to investing or tourism.
Likewise, it is argued that Argentinathe country with the highest inflation (~185%) and the lowest growth (~1.8%) in the G20 presents as the main challenge for next year a reduction in public spending of 15 points of the Gross Domestic Product (GDP), with a deficit in net international reserves in the order of 10,000 million dollars.
Source: Ambito
