(CNN Radio Argentina) – Antonio Aracre, economist, analyzed Wednesday in CNN Economy and News The economic direction of the country, the entry of investments and the impact of the international context.
“The government has made a true transformation of what was an intervened, work, leaders and populist economy in its conception, That left us with an inflation of 200%, 200% of the gap and a fairly sinuous GDP, ”Aracre said.
In that sense, he stressed that, from this starting point, the government “achieves a fiscal discipline, a surplus, begins to clean up the Central Bank, resolves the exchange issue, collapse to inflation and boost economic activity.” And stressed that “Yesterday the monthly estimator of economic activity came out and we are at the highest level since, I think, April or May 2018.”
Consulted on the investments, Arachre explained that “they need two or three things. First, opportunities. Luckily, Argentina has many in very attractive areas for today’s world, such as gas, oil, mining – among them copper – other rare metals, lithium, but also renewable energies, knowledge sciences and, of course, agroindustria.”
He clarified, however, that in some cases “they take longer because they need a legal framework, that the Rigi provides it largely, and certain certainties of continuity and political support forward, that it is somehow conditioned to the result of the October elections.”
-“Investors are seeing if the political model is sustainable or not. They also require something else, especially what are the most local investments and in traditional sectors of the economy: they require savings,” he added.
Regarding international scenario, He mentioned that “the American Treasury Secretary said that it will cost a lot to finish agreeing a fair regime with China, but that they will have to do it, showing a conviction that this was the only way.”
And, in that line, he highlighted the impact of this statement: “That reinsurance that the Secretary of the Treasury put that Argentina, in case there was a global shock, can resort to the American treasure as a last instance lend, will have a very important impact.”
Finally, he evaluated that “Argentina is very good because its economy is very healthy, It is one of the few countries that has an orderly macro, with fiscal surplus, and is controlling inflation based on that process. ”
“We still have a high index, not high inflation, but the index is high because there is a price rearrangement, in that bid between rates, salaries, services, which does not end up rearranging at all,” he concluded.
