31. January 2020 · Comments Off on Argentina · Categories: News

And beyond that at the time the speculation of analysts indicated that the dollar could continue its flight to the $ 7, with consequences (hyper) inflation, the fact is that Argentina's economy allowed a substantial improvement in competitiveness so we can have a greater foreign demand at a time where domestic demand was undergoing a deep crisis and where the financial system was totally disabled to at least try to encourage it. Proceeds from the crisis, it was possible also to balance the accounts tax. The explosion of the model generated a shot in the exchange rate and a jump in prices in 2002 enabled strong growth in tax revenues through higher retention and higher revenues for inflation. And the improvement in the collection was strengthened then by an improvement in economic activity. As it happened on the revenue side, public spending grew slowly. The crisis in Argentina that led to the public debt default, put the country into a situation ripe to pursue the renegotiation of it removes an important principal of the debt and a restructuring of terms of payment for their services. Thus, Argentina managed to clear a stage in the immediate years of heavy debt servicing. But six years of the crisis and despite the very good external context that Argentina enjoyed during this period, appear to be running out the positive effects of the crisis. And the worst thing is that the current situation tends to be worse in some aspects of pre-existing crisis. Improving the competitiveness of Argentina's economy appears to be fading quickly.

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