Argentina accuses US firms that warned of a new crisis of “doomsayers”

The government of Argentina crossed out “usual doomsayers who do their own business” to the American companies that this week warned that the South American country is at the “edge” of a new economic crisis.

“Whoever said that we are once again on the brink of a new crisis is not a sector that invests in Argentina, but a man from JPMorgan that has to do with financial banking and consultancies that were part of the Government of Mauricio Macri (2015-2019). and the debacle of Mauricio Macri”, accused the presidential spokesperson, Gabriela Cerruti.

The president of the United States Chamber of Commerce in Argentina (AmCham), Facundo Gómez Minujín, said in a speech at a meeting last Tuesday, that Argentina will experience this year “inflation with recession”.

The also president of the JPMorgan bank listed the factors that lead Argentina this year “on the verge of a crisis, the tenth since the return of democracy” in 1983.

Cerruti responded this Thursday at a press conference that “what the managers of the financial world say many times has to do with their desires”.

And he explained that they arepart of the machinery that generates speculation, pessimism, uncertainty and generates bullfights”, which he described as “a parallel reality that, as the economy is managed with expectations, ends up taking shape in the facts”.

Minujín had mentioned the unprecedented drought, the lack of foreign currency to import, the fully regulated exchange market, the so-called exchange stocks “that already proved to be unsuccessful”, managed trade and the drop-in of industrial inputs among the factors that lead Argentina to a crisis.

The executive added that Argentina continues “without finding solutions to structural problems”, such as poverty, recurring economic crises, extremely high inflation, income inequality, loss of social mobility and educational quality.

The consequence is that “it is impossible to plan for the long term when we do not have visibility in the very short term”, alerted Minujín.

Argentina suffers high inflation, 104.3% year-on-year last March, poverty affects 39.2% of the urban population and expectations point to a 3% drop in gross domestic product (GDP) this year.

Cerruti indicated that, despite these difficulties, Argentina presents favorable indices, such as that it has 31 consecutive months of registered job growth (983 thousand jobs), historical growth indices of industrial activity (2.6% in the first quarter and 3.1% year-on-year last March) and industrial employment that reached 33 consecutive months of growth.

Source: EFE