The Minister of Economy, Sergio Massaassured this Saturday that “the objective of halving the inflation we received did not change”while affirming that the agreement with the International Monetary Fund is “achievable”.
“The most difficult thing is managing expectations, especially since I had to assume a political and economic crisis: 7.4 inflation, negative reserves, with a huge deterioration in the trade balance; and also with relative prices absolutely unbalanced”he said on the Conecta2 program on CNN in Spanish.
For Massa, “The need to give an answer, to use time well so that these answers are forceful and not magical, sometimes clashes with the expectation, with the desire of the markets, of the workers to recover their income, of society to live with a much more logical inflation and not the one we have to live with today”.
“The first challenging restriction that we have for the next 12 months is to imagine how we find a point at which we are attractive to all that is the Argentine agro-export sector, because that weighs on us in reserves; because Argentina needs to accumulate reserves, but also how we use to sustain the level of activity”he pointed.
The head of the economic portfolio raised the need to understand that “It is important that each Argentine SME, that each Argentine company that produces goods have the dollars to increase the supply of goods because, ultimately, part of the inflationary problem has to do with two and a half years without access to credit, financing us with issuance, with 6 points of deficit only leveraged in the assistance of the Treasury”.
“You had to support companies, you had to support the income of people who were in the informal sector and had to pay their minimum bills at the end of the month; and well, all that is like at home: if you finance yourself with the card and not you have income and you do not generate income with work, there is a moment when the card interest item becomes a mountain difficult to absorb and it is time to stop the ball, to put order, to work seriously “he explained.
Therefore, he added, “take measures that are not the most pleasant out there: when one becomes rigid when it comes to controlling spending, when one becomes methodical when it comes to meeting the objectives that Argentina has signed internationally, when one becomes obsessive With the fact that public investment has a real impact and is not simply the distribution of weights to jurisdictions, it has to do with using the resources we have in the best possible way”.
Regarding the multiple exchange rates, he indicated that “Argentina has to move towards the simplification of this process, trying to balance the input and output stacks of what are producer goods, consumer goods, and trying to balance the stacks of what are output of luxury goods or products that already They have prices that are somehow dollarized.”
It may interest you: Inadi summoned Pichetto for his statements about the Minister of Women