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Montevideo, October 23rd 2018 - 23:12 UTC

Argentine admits less growth and more inflation, but exports could be boosted with a dearer dollar

Tuesday, May 15th 2018 - 06:43 UTC
Full article 2 comments

High interest rates will have a negative impact on activity, and the weaker peso resulting from a floating exchange rate regime will add to already sky-high inflation, but both are necessary to prevent a deeper crisis, Argentine Treasury Minister Nicolas Dujovne admitted on Monday. Read full article

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  • Enrique Massot

    “We will have somewhat less growth, and somewhat more inflation,” Treasury minister Nicolas Dujovne told reporters.

    No s...t!!

    With the peso losing 20 per cent of its value and Argentina prices traditionally closely following any US dollar evolution, do we really need a Macrist minister to tell us?

    All the same, what sort of productive activity can be expected when the benchmark interest rate is 40 per cent? No business can be so profitable to allow taking credit at rates 50 per cent or higher.

    There is no much room to maneuver for the Macri government, which has beaten all the previous records on eroding the economy.

    Electors better begin now to look for replacement.

    May 16th, 2018 - 04:03 am - Link - Report abuse 0
  • Zaphod Beeblebrox

    Reekie,

    “All the same, what sort of productive activity can be expected when the benchmark interest rate is 40 per cent?”

    You are forgetting the influence of foreign investors who don't have to borrow at local rates. Many companies whose markets have matured in NOAM and EMEA see LATAM as an opportunity for new markets and growth. Yes, it is unpredictable but the risks can be managed.

    Oh I forgot, you seem to think that foreign investment equates to some sort of loss of sovereignty even though it provides income for people living in Argentina who then spend their money in Argentina.

    Even if product is imported, the local people in the distribution chain to the final customer all benefit from taking their cut.

    May 16th, 2018 - 06:10 pm - Link - Report abuse 0

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