The economist is confident that current economic and monetary policies will control inflation, recover purchasing power and improve salaries in dollars, thus promoting a sustained recovery.
The economist Ramiro Castiñeira highlighted the economic policies of the Government and considered that the inflation data for Septemberof 3.5%, “confirms the course” adopted. The director of the Econometric Consulting Firm maintained that the monetary measures applied during 2024 have a positive impact, which is why he considers that “the inflation data confirms the direction” and announced that the CPI will go “directly to 0.”
Castiñeira explained that low inflation reflects the effectiveness of the policies implemented to stabilize the economy. When referring to the future of price dynamics, he was confident when predicting: “In October, inflation will be 3% or less“. This forecast is based on the control of the fiscal deficit and the reduction of monetary emission, which, according to him, could lead to inflation disappearing completely: “Knowing that there is no more emission, inflation will go away directly to 0”.
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In statements to the program “Si Pasa, Pasa” on Radio Rivadavia (AM 630), Castiñeira analyzed the economic outlook for next year and highlighted two perspectives: that of the public sector and that of the private sector. “The private sector projects annual inflation of 40% for next year, while official data forecasts inflation of 20%,” he stated.
Another of the topics addressed was fiscal adjustment, about which the economist assured that the most difficult thing has already happened. “The adjustment has already been made. The budget indicates that if more is collected, those additional pesos will be used to pay the debt or reduce taxes“he explained. Castiñeira stressed that the State has reduced its size by a third, which made it possible to balance public accounts, a key factor to avoid the need for monetary issuance in the future. “Fiscal balance will be defended at all costs so that the Central Bank does not have to issue a peso,” he added.
Other definitions of the economist
Castiñeira also referred to the “platita plan,” noting that although it left a large amount of pesos in circulation, liquidity in the economy is decreasing thanks to current policies. He added that the economic recovery is allowing the private sector to absorb these pesos in a controlled manner.
As soon as to the dollarthe economist indicated that the Government is working to reduce the pace of official devaluation. “As inflation continues to fall, which in the worst case will be 3%, the pace of official devaluation will be allowed to be reduced even further, which will also contribute to lower inflation,” he explained.
Finally, Castiñeira spoke about the recovery of purchasing power, a key factor in the coming months. In his words, “as we emerge from communismwe will no longer depend on state aid.”
In addition, he addressed the issue of poverty, pointing out that the collapse of the economic model was the main cause of 50% of the population being below the poverty line. However, he was optimistic about a quick improvement in salaries measured in dollars: “There will be a rapid recovery of salaries in dollars“he concluded.
Source: Ambito
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