MercoPress. South Atlantic News Agency
Argentina expanded 2.9% last year; 2018 challenging given the persistent drought effect on crops
Argentina's economy expanded 2.9% in 2017 from the prior year and 3.9% in the fourth quarter versus the same period in 2016, the Indec statistics agency said this week. The year-over-year figure was slightly above the 2.8% annual growth rate given last month by Argentina's monthly economic activity indicator, seen as a proxy for gross domestic product. Read full article
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Disclaimer & comment rulesExternal agencies did give an initial break to the Macri government, but after two years the consequences of an irresponsible management of the economy are becoming too visible.
Mar 23rd, 2018 - 06:31 pm - Link - Report abuse -2According to Focus Economics, “Balance of Trade in Argentine (reached) an all time high of 2543 USD Million in May of 2009 and a record low of -1510 USD Million in November of 2017.”
Not surprising when most developed countries tend to restrict imports and Argentina runs in opposite direction by opening wide to imports competing with local production that are killing small and medium-sized enterprises.
“More troublingly, Argentina’s macroeconomic stability in the medium-term is becoming more uncertain…the country is running a persistent trade deficit and the government keeps borrowing from international lenders to finance fiscal spending,” also notes Focus Economics.
Heavy borrowing is, in fact, the lifeblood that keeps the lights on in Macri’s Argentina.
What about the practical effects?
“The Universidad Torcuato di Tella (UTDT) consumer confidence index dropped from 45.2 points in January to 43.8 points in February,” noted Focus Economics.
“The index dipped further below the 50-point threshold that separates pessimistic from optimistic sentiment among consumers, where it has been almost uninterruptedly since January 2016.”
Let's remember that Mauricio Macri became president in December 2015.
However, there was a Eureka moment where the consumer confidence index soared above 50. When? You guessed…just before the October 2017 legislative election in which the governing party did very well. Right after the election, the index abruptly dropped again to below 45 where stands now.
Hard to believe, but check it out:
https://www.focus-economics.com/countries/argentina/news/consumer-confidence/consumer-sentiment-worsens-in-february
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