Published 18/07/2024 13:26 | Edited 18/07/2024 14:04
The International Monetary Fund (IMF) has worsened the outlook for the Argentine economy, projecting a 3.5% drop in GDP (Gross Domestic Product). In its April report, the IMF estimated a 2.6% drop. The new forecast was released on Tuesday (16).
“The fiscal and monetary program is on track to keep inflation under control, but it has had an impact on activity because there is less public spending and monetary conditions have tightened,” the IMF said.
The result of the Argentine economy is the result of the brutal fiscal adjustment carried out by the ultra-rightist Javier Milei.
To achieve a positive balance in public accounts, Milei has been implementing a fiscal adjustment plan that involves strong control over spending.
To this end, the Argentine president has been promoting mass layoffs in public bodies and reducing funding in key sectors of the Argentine state, such as health, social assistance and culture.
The decline in economic activity is widespread and involves companies focused on the domestic market, which are having difficulty selling to a population affected by inflation and loss of purchasing power.
According to consultancy firm Scentia, mass consumption has fallen 12.5% in the last 12 months. In the first 6 months of 2024, the decline has already accumulated 8.5% compared to the same period in 2023, according to the consultancy firm.
The decline was more pronounced in self-service stores than in supermarket chains: in the former, consumption fell by 14.6% and in the latter, by 10.3%. In the first half of the year, the decline is 10% for supermarkets and 7% in self-service stores.
Source: vermelho.org.br
