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They don’t trust the peso either


An Argentine spice trader secures his stand against Corona.
Image: Reuters

Argentina’s economic situation arouses little confidence: even among its own people, whose demand for dollars has to be curbed once more.

D.The most urgent problem for Argentina is to calm the economy, Argentina’s Finance Minister Martín Guzmán told Congress this week. There he presented the estimate for the coming year. And it doesn’t look all that catastrophic: the government is aiming for growth of 5.5 percent, a dollar rate of around 100 pesos and inflation of 29 percent. In addition, the government wants to reduce the budget deficit from 10 to 4.5 percent. How she wants to do this remains open. Guzmán himself said that against the background of the uncertain international context, it has so far not been possible to draw up an economic plan.

The government’s prognoses are received with skepticism. Argentina’s economy is worlds away from the hoped-for calm. The successful rescheduling of 66 billion dollars with private creditors a few weeks ago does nothing to change this, which may give the country some breathing space but does not guarantee a solution to the economic difficulties.

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