MercoPress. South Atlantic News Agency
Macri anticipates more Argentines will fall into poverty this year
More Argentines are likely living in poverty now compared with last year, President Mauricio Macri said on Friday, as the country's economy slides toward recession following a currency crisis and a severe drought that harmed farm output. Read full article
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Disclaimer & comment rules“Next year the economy will grow,” Macri said. “Not much, but it will grow.”
Aug 18th, 2018 - 07:53 am - Link - Report abuse -2So here you go. President Macri is finally taking notice and begins to open the umbrella about the disaster he created.
Here's the true reason senior newspapers in Argentina are diligently filling 95 per cent of their front pages with the NotebookGate - anything but the economy, stupid!
Unfortunately, nice words cannot keep covering the sun with a hand. Not only the “D” word is being whispered more and more; there is talk about advancing the October 2019 election.
It will be a sad end for a government whose only consistent action is to borrow money.
Torvarich Enrique and his leftist friends try to convince us with such stupidity to scrupulously wash the disgusting corruption of Cristina's legacy.
Aug 18th, 2018 - 04:17 pm - Link - Report abuse +1Mauricio Macri is in pretty bad shape if the only MP reader stepping in his defense is a trans-andin neighbour with a tired anti-left cliche as his lone argument.
Aug 18th, 2018 - 08:21 pm - Link - Report abuse -2Of course, the economic crisis in Argentina is serious enough as to require political solutions far beyond entrenched ideological positions.
Here's my hope that reason prevails over narrow self-interests.
EM - The economic crisis was caused by the previous government which left a budget deficit of 7% of GDP, no reserves in the Central Bank, double-digit inflation, the worst international relationships since the time of the military regime, default and unpaid international court sentences against the country for stiffing bondholders and expropiating an oil company. This bears repeating because no matter how much you spin it, Cristina Kirchner is responsible for leading the most corrupt government in the history of Argentine democracy. Without even considering the corruption scandals, the macroeconomic numbers she left alone would be considered a proper reason for impeachment and jailtime in any modern democracy. And this is coming from an Argentine living in Argentina, not someone preaching left-wing ideology while sitting comfortably in free market Canada.
Aug 19th, 2018 - 02:54 am - Link - Report abuse +3CC claims residing in Argentina, yet he appears to be unaware of the most elemental country’s realities.
Aug 19th, 2018 - 05:46 am - Link - Report abuse -4“The economic crisis was caused by the previous government,” CC claims.
Let’s assume for a moment that the CFK government was as catastrophic as CC depicted.
Yet, Mauricio Macri promised Argentines to improve things if they elected him. They did it! Hey, he even got enough support to apply his program and pass most of his bills.
However, 32 months later, the Argentine economy hasn’t improved a single bit. In fact, it has become way worse.
Not only the economy is in worse shape – the country is now facing the prospect of a payment crisis that could be similar – or worse – than that of 2001.
Still, according to CC, “it’s all CFK’s fault.”
Let’s see. Macri’s term is four years – he has spent almost three in government and has just over one more year to go. Which means he has about 25 per cent of his time in office to demonstrate what he is capable of.
I would argue the prospects aren’t brilliant, whether you look at it from Canada or from La Matanza.
Perhaps it looks different from a cat’s ivory tower?
Reekie,
Aug 20th, 2018 - 05:50 pm - Link - Report abuse +3“However, 32 months later, the Argentine economy hasn’t improved a single bit. In fact, it has become way worse.”
This is an often repeated claim of yours which I have checked using https://tradingeconomics.com/argentina/indicators and, as always, your claims are not fully supported by the statistics. If I just compare the curves at (Jan) 2016 and 2018 I see:
- GDP growth rate: Growth from minus 1% to a fairly steady plus 1%. This is an improvement.
- Unemployment: 7.5% on both dates but oscillating wildly, probably due to seasonal effects. I'll call this no change.
- Inflation rate: 30% to 25% - an apparent improvement, although the curve looks crazy.
- Interest rate: 35% to 28%, so it was reducing although it has subsequently increased.
- GDP (constant prices): US$b690 to US$b720 - an improvement.
So, to me (and I am not an economist) it actually looks like a weak recovery. You can cherry pick the data, or you can lie about the data but either way I do not believe that the data supports your claim that the economy “hasn’t improved a single bit”.
@PG
Aug 22nd, 2018 - 05:50 pm - Link - Report abuse 0What a nice exercise, PG.
You said then GDP growth rate is improving.
“Fairly steady plus 1%?”
You ignore the recent IMF-mandated austerity measures that deepen recession and that, according to president Macri's own admission (Clarin, Aug. 19), will contract Argentina’s GDP by “close to one point” in the current year.
Unemployment: 7.5%...“I'll call this no change,” PG says.
The numbers are not conclusive all right. However, the trend appears to be a loss of quality job positions that are replaced by low-paid, informal positions. Unemployment is one of three main Argentines' concerns right now -- with reason.
Inflation rate: “an apparent improvement, although the curve looks crazy,” concedes PG.
25 per cent? Are you sure you live in Argentina? According to most consultants (Ambito Financiero, July 4) inflation in 2018 will be 30 per cent. (Could be more).
“Interest rate: 35% to 28%, so it was reducing although it has subsequently increased,” PG claims.
Love this one. “It was reducing although it has subsequently increased.” By how much? You prefer not to say. According to Dinero of July 5, Argentina “starts this week with the highest money costs in the world, (40 per cent) followed by Surinam at 25 per cent, Venezuela at 25 per cent, and Haiti at 20 per cent. Argentina has since increased its rate to 45 per cent (Forbes, Aug. 14). You should know that no productive economic activity becomes viable at such rates - only financial speculation.
- GDP (constant prices): US$b690 to US$b720 - an improvement. Sure!
“I do not believe that the data supports your claim that the economy ‘hasn’t improved a single bit.’”
Well. If I were you I would pay attention. The famous “D” word is making a comeback, and even the “corralito” ghost is evoked these days.
But feel free to keep hoping – hope, as they say, is the last thing one loses.
PG?
Aug 23rd, 2018 - 07:14 pm - Link - Report abuse 0Commenting for this story is now closed.
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