Due to the accelerated devaluation of the peso, Argentines today are trying to get rid of their currency and buy dollars, in addition to seeking to acquire durable goods such as appliances, cars, construction materials and certain technology.
The inflation has been runaway for years in Argentina and according to analysts the situation would be far from being reversed.
Consumer prices recorded a year-on-year rise of 71% -the highest rise in 20 years- and until recently forecasts indicated that inflation would climb this year to 90.2%.
Now, according to new information compiled by the Buenos Aires consulting firm EcoGo and cited by Diario Financiero, inflation in that country would reach almost 100% at the end of this year (99.6%).
Faced with the accelerated devaluation of the peso, Argentines are currently trying get rid of your currency and buy US dollarsin addition to seeking to acquire durable goods such as appliances, cars, construction materials and certain technology.
The counterpart of the consumer is the merchant or manufacturer who buys merchandise or retains its production.
Fiscal deficit and generalized crisis
Argentina faces serious macroeconomic imbalances and recurrent financial tensions.
Faced with the crisis in the country, at the end of July the Government decreed a suspension in the hiring of personnel in the public administrationa measure that is part of the need to reduce the fiscal deficit.
Argentina accumulated in the first half of the year a primary fiscal deficit of 755,975.7 million pesos (5,558.6 million dollars), a figure equivalent to 0.99% of GDP and which represents an increase of 263% compared to the registered red in the same period of 2021.
Shortage of dollars for “growing a lot”, according to Fernández
Despite everything, in June the president Alberto Fernandez stated that in his nation Few dollars circulated because they were “growing a lot.”
He accused the opposition of causing imbalances in the exchange rate and assured that “speculation continues to be one of the causes of inflation”another problem he acknowledged has yet to be resolved.
“Today’s Argentina has problems, of course it does. It lacks the dollars that are needed to be able to continue investing and continue generating production, and that is why we take care of the dollars, because we want the dollars not to go on trips, we want them to go on producing and providing work”he claimed.
And he remarked: “We have a problem with dollars because we grow a lot and we need dollars to be able to import supplies. And we are growing so much that although we have an export record, the dollars are not enough for us because of the amount of inputs that we have to import to continue producing.”