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Argentina central bank turned into state-financing tool: recession and higher inflation forecasted

Thursday, August 8th 2013 - 03:05 UTC
Full article 11 comments

Argentina is forecasted to fall into recession next year on the back of super-loose money policy with inflation reaching 24% this year and 30% in 2014 as the government continues to appeal to Central bank resources to meet budget commitments, according to London based Capital Economics. Read full article

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  • Britworker

    What a sorry state of affairs. Great news though!

    Aug 08th, 2013 - 03:18 am - Link - Report abuse 0
  • Anglotino

    It's all a lie I tell you.

    Argentina is BOOMING and everyone is spending because they are so affluent and happy. It's the west that is bankrupt not us. We avoided all the mistakes youse made.

    INDEC will tell us the real numbers; don't you worry.

    And if these forecasts do prove to be true.... well then it is obviously a conspiracy by the imperialistic UK and US who want our land and resources and are jealous of us.

    Aug 08th, 2013 - 05:19 am - Link - Report abuse 0
  • yankeeboy

    They've past the time of year they can build reserves from the grain exports. The rest of the year will have steady outflows and winter is far from being over. I don't know how they think they're going to pay for fuel or any other critical imports.

    They had better hope the USA doesn't declare BCRA an arm of the Gov't and I bet that is coming really soon,

    Then bye bye to whatever reserves are left in NYC and Switzerland.

    Aug 08th, 2013 - 05:39 am - Link - Report abuse 0
  • Optimus_Princeps

    @2 I really hope all of that was sarcasm. Otherwise, you're going to be eating out of the garbage in a few years, when CFK runs away like a coward with the nation's stolen money.

    Aug 08th, 2013 - 08:15 am - Link - Report abuse 0
  • Condorito

    “limits to printing pesos to lend the government have been substantially relaxed, with the obvious consequences of spurring inflation and further undermining confidence in the Peso.” ...

    ... obvious yes, but not to everyone.

    Aug 08th, 2013 - 09:07 am - Link - Report abuse 0
  • Captain Poppy

    I had read that Argentina is expected to head into an extended period of economic contraction starting as early as this fall, right after the October elections when the government will allow the peso to fall even faster in a way too late fix to try and increase exports other than grains.

    Aug 08th, 2013 - 09:55 am - Link - Report abuse 0
  • yankeeboy

    Soy is approaching $400/ton! At current prices that has a U$5B negative effect on tax revenues next year.
    My guess is the price will be even lower next year especially in Argentina since it considered an unreliable trade partner.

    I just don't see how they buy fuel next winter

    Simply fascinating to watch

    Aug 08th, 2013 - 10:18 am - Link - Report abuse 0
  • Simon68

    “... with inflation reaching 24% this year and 30% in 2014 ... ”

    I'm afraid Capital Economics has erred on the conservatve side with this statement, at this moment the inflation in our part of Patagonia is way above 30% just taking into account such things as food, fuel and utilities!!!!!!!!!

    Aug 08th, 2013 - 10:18 am - Link - Report abuse 0
  • yankeeboy

    8. Money supply is growing at 60% yoy! Hyperinflation will start any time. My guess is that a HUGE devaluation will come after the elections.
    Buy laundry detergent, sugar, coffee or some other super market commodity that won't spoil because they're going to be in very short supply and very valuable ( in pesos) soon.

    Aug 08th, 2013 - 11:37 am - Link - Report abuse 0
  • The Truth PaTroll

    Yes, because the world trust London based financial institutions.

    Next joke.

    Aug 08th, 2013 - 12:44 pm - Link - Report abuse 0
  • ChrisR

    I had to laugh when they said the official rate will be 8 arsewipes to a dollar.

    Didn't Pistol Pete Moreno guarantee that would NEVER happen?

    More like 12+ arsewipes to a dollar I would have thought as a minimum.

    Yes, blow up time by the end of next year and I don’t mean TMBOA giving BJs.

    Aug 08th, 2013 - 01:21 pm - Link - Report abuse 0
  • yankeeboy

    If its 8 or 9 in the “caves” its 10-12 in the hotels, restaurants, bars and retail establishments.
    Even the most ideologically K supporter must know a HUGE devaluation is on the horizon.
    Buy laundry detergent toby
    You'll be able to trade it for food for your family.

    Aug 08th, 2013 - 02:38 pm - Link - Report abuse 0

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