Argentina announces a rate and a decline in the economy – 27/12/2018 – World

The Argentineans received two bad news regarding the economy this Thursday (27). The first, which is directly related to their daily expenses, is a 40% increase in fares for all public transit services, which will come into effect on January 12th.

Indec (local IBGE) announced the 4% quarterly economic slowdown in October, accumulating a 1.7% decline since the beginning of the year. According to Indec data, the worst performing sectors were trading (-11.2%), industry (-6%), transportation and telecommunications.

The adjustment of transport, which must be followed by the increase of other services, gas, electricity and water, is part of the adjustments provided for in the budget approved by the Congress which aims to meet the requirements of (19659002). The government's strategy is to announce increases in public rates as quickly as possible in the first quarter of the year, so as not to harm them as a result of the presidential and legislative elections of October

at the beginning of the year. Year, the metro ticket cost 6 pesos, against 13 pesos in October. Now, with the new increase, it will reach 18 pesos ($ 1.82).

The figures with which Argentina ends the year contrast sharply with what the government predicted at the beginning. Estimates show a growth of 3% of GDP, an inflation of 15% and a dollar around 20 pesos.

In December, the situation is completely different, the country is in recession, the GDP should be To shrink to 2%, Argentina had to seek two loans from the IMF (a total of 57 billion USD), Inflation reaches 47% this year and the dollar is worth 39 pesos, according to Thursday's quote.

The government accuses the international scenario, high interest rates in the United States, the fragility of the Argentine economy and the Argentine currency against the dollar and some factors.

Since January, more than 55% of the Argentine currency has been devalued.

At the same time, Macri aimed to remove subsidies from the kirchnerist era in a gradual manner, so as not to have a significant impact on the population.

19659002] But this caused a trauma in the national mood because the increases were almost monthly. In her talks with Christine Lagarde of the IMF, the goal was to leave aside gradualism and immediately make the necessary adjustments to achieve a zero budget deficit in 2019.