Argentina posted a primary fiscal deficit of 3.9% of GDP during 2017

Saturday, January 20th 2018 - 09:21 UTC

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Argentina posted a primary fiscal deficit worth 3.9% of GDP in 2017, below its 4.2% goal and the 4.6% figure posted in 2016, Treasury Minister Nicolas Dujovne told reporters. He said the government’s 2018 target for a primary fiscal deficit remained at 3.2% of GDP, with targets of deficits worth 0.6% in the first quarter, 1.6% in the second quarter and 2.2% in the third quarter. Read full article

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Enrique Massot
Oh, the art of making bad news appear as good.

“Argentina posted a primary fiscal deficit worth 3.9% of GDP in 2017, below its 4.2% goal and the 4.6% figure posted in 2016.”

In reality, Macri's economic program is based on unsustainable, massive borrowing that happens because of the high interest rates Argentina is willing to pay--just to keep the lights on.
In the meantime, the domestic productive sector of the economy takes a death hit from wide-open imports, with companies closing down every month and good jobs being lost.
The only thriving sector is the agro export and mining, which have seen its export taxes slashed and are allowed to keep their profits abroad.
Capital flight is at an all-time high, and some economists close to Cambiemos are beginning to express their worries in public.
Like a reverse Robin Hood, Mauricio Macri has come to steal from the poor to give to the rich.
The goal? Go from a 50-50 income distribution to 70-30...and you know who the big losers are.
Many are those who gave their vote to Cambiemos.
Some of them are still holding their breath waiting for something good to happen.
The question is, how long they are willing to wait.
Jan 21st, 2018 - 06:09 am - Link - Report abuse 0
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Tombar
I am confused! If 'good jobs' are being lost then which jobs are being created, since unemployment has been dropping from 9.2% in June 2017 to 8.7% in September and 8.3% in December 2017 (source: tradingeconomics.com)?

Also, as Argentina has significant natural competitive advantage and significant spare capacity in agriculture, minerals and energy, surely it makes sense for any government to incentivise their development and to encourage foreign companies with expertise lacking domestically to invest in partnership with local companies? Argentina benefits from this through higher employment and through the ensuing taxes on profits and employment. Modern economies do not forbid profit repatriation; to the contrary, without it overseas investors are wary of investing, especially given Argentina's record. Argentina has the resources - encourage the world to bring expertise to the party and all will benefit!
Jan 22nd, 2018 - 11:17 am - Link - Report abuse +1
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Zaphod Beeblebrox
“Oh, the art of making bad news appear as good”

Reekie, Why are you so unhappy when good news comes out of Argentina? Why is a reducing fiscal deficit bad news exactly?

Fact: The Argentine economy is now both servicing the international debt AND reducing its fiscal deficit. The fact that it can afford to do both must be good news. The fact that it can do both indicates that the borrowing is not unsustainable as you claim because Argentina's growing economy can clearly currently afford to pay its debts and this situation will only get better as the debts reduce and the economy grows.

Tombar,

“I am confused! If 'good jobs' are being lost then which jobs are being created, since unemployment has been dropping from 9.2% in June 2017 to 8.7% in September and 8.3% in December 2017?”

You have to understand that many of Reekie's statements are not based on the sort of facts that you have presented. We don't know why he does this.
Jan 22nd, 2018 - 07:34 pm - Link - Report abuse 0
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