Economist Agustín Etchebarne was interviewed by Mauro Viale at A24, where he declared that “the current economic situation will improve slightly throughout the year, not as much as the government would like, and the first three months will be difficult because tariff increases continue. I believe inflation this year will remain at around 20% and 8 points of this inflation can be traced to this increase in tariffs”.
Regarding what the government should do, Etchebarne pointed out that “adjustments should be made in the public sector but the government hasn´t done any. They didn´t dismantle the bomb, we still have a great fiscal deficit. We need much clearer signals; the current level of spending is unsustainable. Furthermore, a significant amount of debt was taken up. I can give you more information, Mauro: today there are 8 million people working in the private sector and 20 million in the public sector. It is a problem we have to solve”.
He closed by saying “we have to understand Argentina´s problems, it is the duty of journalists to explain them. I know this year is an electoral year so the bomb will not be deactivated but next year they will have to do something. We can´t continue indebting the country because sooner or later if you don´t pay they will no longer lend you money. There are two alternatives: either spending decrease or taxes go up. We are still spending money on absurd things”.