2023-10-04 21:43:53
The dollarization of the Argentine economya proposal by ultra-liberal presidential candidate Javier Milei, would create problems without “fiscal accounts in check,” said William Maloney, chief economist of the world Bank for Latin America and the Caribbean. The expert also stated that it would generate “other distortions and other problems.”
The development bank published this Wednesday the latest growth prospects for the region and estimated that Argentina will decrease 2.5% this 2023, although in 2024 it will grow 2.8% and in 2025, 3.3%
With a poverty rate of more than 40% and a inflation of more than 120% 12 months into August, the outlook for the third regional economy is gloomy. To solve it, Milei proposes abandoning the peso and embracing the dollar if he wins the presidential elections on October 22.
World Bank and IMF advise against dollarization
But the World Bank is not convinced. In Maloney’s opinion, “inflation control is necessary” in Argentina, but to achieve it, “fiscal balance” and “confidence that the government is serious” are needed.
The opinion of the WB is in line with that of the International Monetary Fund (IMF), which warned last week that the dollarization of the economy is a measure that, if taken, would require important preparatory steps and is in no way a substitute for policies macroeconomic issues that the country must address.
2023-10-04T18:39:49Z UTC
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