Argentina’s expected inflation rate increases threaten economic growth

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Miley’s focus on inflation affects other economic objectives

Miles are economicalShock treatment” is starting to show some cracks, Bloomberg argued, and he has had to scale back some of his more extreme measures to retain popular support. He postponed fuel tax and utility price hikes, which would have brought inflation up another 1.2%, and did not increase public transport fares, which have been frozen since the spring. But Miley’s focus on keeping inflation under control could come at the expense of other economic objectives, a Buenos Aires-based economist told the outlet: “Postponing higher price changes means inflation wins are bread for today, but hunger for tomorrow. „

Unlike other presidents, Miley has done 'a lot of things right’.

Financial Times, Foreign policy

Miley inherited a troubled economy, but unlike his predecessors, “Many things are right„Early in his presidency, a Latin American economist wrote in the Financial Times. Milei eliminated public sector deficits, adjusted the real values ​​of regulated prices and the real exchange rate to a „more realistic level” and pushed for deregulation and modernization. For ordinary people, Milei’s austerity policy”Destructive” Consequences, foreign policy was written in March, as salaries and pensions did not keep up with inflation, and people were pushed into poverty. But the analyst argued that inflation is not as bad as expected, and Miley has managed to keep her approval rating so far.

Chinese competition and debt withdrawals have stifled growth in Latin America

Council on Foreign Relations

Cities in Latin America Production will be low According to Shannon K., an expert at the Council on Foreign Relations, the region’s economic growth has slowed since 2000 compared to the rest of the world. O’Neill wrote, arguing that the problem stems in part from industrialization. Manufacturing was particularly affected by Chinese competition, forcing workers into less productive sectors such as retail and construction. Urbanization has failed to improve people’s economic opportunities due to congestion and poor infrastructure, especially after Chinese lenders pulled back from Latin America, O’Neill noted. However, he argued that regional governments now „have more say” in bringing back transparency to public projects supported by financiers such as the World Bank.

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