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Argentina posts a primary fiscal deficit of 1.5% of GDP

Thursday, July 20th 2017 - 20:51 UTC
Full article 33 comments
Dujovne said there was “no doubt” that Argentina would meet its annual goal this year. He pointed to a 32% increase in government revenue in the first half Dujovne said there was “no doubt” that Argentina would meet its annual goal this year. He pointed to a 32% increase in government revenue in the first half

Argentina posted a primary fiscal deficit of 144 billion pesos (US$8.4 billion), or 1.5% of GDP in the first half of 2017, Treasury Minister Nicolas Dujovne said on Wednesday, beating the government target for a gap of 2% of GDP. The primary fiscal deficit was 103 billion pesos in the second quarter, compared with 41 billion pesos in the first quarter.

 For June, Argentina posted a primary fiscal deficit of 57 billion pesos, compared with 27 billion pesos in May. The primary budget balance, which measures government spending relative to income and does not include debt payments, is followed by the markets as an indicator of Argentina's ability to meet its financial obligations.

Cutting the fiscal deficit of Latin America's No. 3 economy is a key priority for business-friendly President Mauricio Macri, who took office in December 2015. The government is aiming to cut the deficit to 4.2% of GDP in 2017 and 3.2% in 2018, compared with 4.6% in 2016.

Dujovne said there was “no doubt” that the country would meet its annual goal this year. He pointed to a 32% increase in government revenue in the first half of the year as “consistent with the reactivation observed in the economy.”

Argentina's economy shrank 2.2% in 2016, but emerged from a deep recession to post modest growth in the final two quarters of last year. The economy has expanded 0.4% in 2017 through April compared with the same period last year, according to government data.

The total financial result, which includes payments on the public debt, was a deficit of 92 billion pesos in June, up 26.5% from the same month last year. In the first half of the year, the deficit including interest payments was 256 billion pesos, up 43% from the year-ago period.

Categories: Economy, Politics, Argentina.

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  • Marti Llazo

    Reekie persists in his clown-like assertion that present conditions are the sole responsibility of the present government. How easy it is to demonstrate otherwise. It is axiomatic that the long shadow of past peronismo continues to prejudice and hamper development of the country.

    Consider the expropriations that CFK conducted, and how those came back to bite the country. Take the Aerolineas expropriation, also known as “theft” since CFK was, above all else, a thief. CFK famously (and insultingly) paid “one peso.” The gap-toothed populist choripaneros howled with delight. It has now returned to haunt them, though they fail to understand why they are out of work now. The Centro Internacional de Arreglo de Diferencias relativas a Inversiones (Ciadi), to which Argentina subscribes, has fined Argentina US$320 millions - plus big interest - for that expropriation. No doubt the other considerable expensive evils of the CFK regime will continue to cost Argentina in the future.

    Jul 22nd, 2017 - 03:32 pm +2
  • Marti Llazo

    There are now more and more adverse judicial decisions that are essentially multi-million-dollar Peronist-era debts coming due - debts that will be paid by Argentina for decades to come. Kircherist expropriation crimes have been prosecuted and the country is being punished for those crimes. And we have not seen the end of it.

    The thievery, lawlessness, and chicanery of the Kirchner regime are being exposed every week, and even more new bills are mounting as more Kirchnerists are sent to jail. De Vido is looking at a possible 11 years in prison. Even the Kirchner's accountant has been arrested and sent to jail.

    “Por la inmensa torpeza y arrogancia que el gobierno anterior tuvo con Aerolíneas el país fue condenado a pagar US$320 millones más intereses” (Due to the ineptitude and arrogance the previous government showed with Aerolineas Argentinas, the country is obligated to pay US$320 million plus interest).

    That about sums up the nature of Kirchnerism.

    Reekie can't understand how long these negative impacts will continue to hound the country. How the neglect of the Kirchner years in everything from infrastructure to tax reform has made the country unproductive and uncompetitive - not to mention overwhelmingly corrupt and dysfunctional. A sure formula for increasing unemployment, high inflation, and decay.

    But then, so long as there are Argentines running this country, and criminals such as the former presidenta and her minions trying to hide from prosecution in the congress - as is the Argentine way - we can continue to enjoy the daily circus of self-destructive, Third- World mafia behaviour.

    Jul 23rd, 2017 - 06:49 pm +2
  • Capt Rockhopper

    Massot are you serious, Kirchner defaulted on a debt that had already been defaulted upon. Basically the debt had been cut by 90% by the creditors and she defaulted on the balance. The Kirchner medicine will result in a long slow painful death for the patient. Argentina will follow Venzuela.

    Jul 24th, 2017 - 04:54 am +2
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