2023-08-16 17:33:12
The economic crisis continues to deepen with the interruption of imports and a constant devaluation of the value of the peso. For this reason, Channel E contacted the economist and foreign trade specialist Miguel Poncewho referred the effect of Javier Milei’s victory on the economy and concern about the stoppage of the real economy.
The effect of Javier Milei’s victory on the economy
Regarding whether the result of the PASO elections and the victory of Javier Milei precipitated the economic crisis that Argentina is experiencing, the interviewee said that “I would have to say that it had a lot to do with the Milei factor, because in one way or another that uncertainty that was reflected in the weakness of the Government to stop any currency run is aggravated with the result of Sunday, which had said that it was the worst for the markets, “because with this result “the fact that a dollarization process is more likely“.
“A contingency plan was being prepared in case something like this happened.that plan possibly generated a very difficult effect because some issues were not taken into account,” Ponce explained. Then he added: “The difficulty is if it is enough to blame Milei or if this is the lack of skill of the current economic management and how unpredictable it is in the months that remain.”
Concern about the stoppage of the real economy
In this sense, the interviewee listed that there are three key processes that are the October elections, a possible ballotage and the transfer of command. For these three there are many months to go, so there is a lot of time left with an unstable economy.
In addition, the economist asserted that the greatest concern today is to generate an economic recovery, because “the real economy is absolutely stopped”. “Before we said that foreign trade was stopped, but now the national economy is stopped, there are no prices.”
Along the same lines, Miguel Ponce expressed: “I would be very concerned about getting out of this economic downturn, which is leading us to reflation“. “The recession deepens if the country is stopped and inflation is obviously tied to the rise of the dollar.” “In the next two months we are going to have more than 25% of inflation added up.” “The last one-digit inflation data was yesterday,” he concluded.
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