economic, Andres NeumayrHe spoke with Canal E and pointed to the Argentine economic context and growth prospects for the coming years. He also noted that the country is going through a phase of profound changes that could lay the foundations for a more stable and dynamic economy.
“Argentina seems to have begun the process of transforming the economy with too much regulation, closed to the world, with chronic inflation, Towards an economy with a balanced budgetMoney is not printed and inflation decreases, slowly Trust more in the markets From the state to allocate resources,” said Andres Neumeier.
The impact of restructuring on companies
Likewise, he explained, this process “is not one place Everyone wins for sure“, because it means reallocating resources between sectors. “There will be industries that shrink, others that expand, and changes in prices that will change the profitability of some companies, and This reallocation of resources is part of the overall development of a vibrant and dynamic economyHe explained.
These movements generate an environment “in which there are always new companies,” Neumayer stressed That jobs are being created and businesses are being closedAs it grows, the challenge is to understand that “when all I see is a company closing its doors; I don’t watch the entire movie. You have to watch the whole movie.”
Given the concern about job losses in SMEs, this was considered a normal part of the development process. “In general, in the richest and most advanced economies, The size of the companies is larger. Part of the development will be to have larger companies on average. That means it Large companies will expand and small and medium companies will close their doors. “But it’s not bad,” he said.
Volatility: Constant in all world economies
Regarding exchange rates and financial fluctuations, the economist stressed that “all economies suffer at some stage from fluctuations. This doesn’t break themIn the Argentine case, he emphasized that instability is fueled by “the political debate about two models for the country, One of them encourages this reform that we are talking about, and the other proposes a closed economyWith the state taking care of everything and not the market.
“In this context, It’s normal for people to want to cover themselves “In the face of this risk that the credit they have against the state will be less valuable,” he explained. However, he expressed confidence in reducing volatility: “To the extent that the country gains a consensus on the virtues of a balanced budget and a country that is deregulating little by little, We may see more political and economic stability“.
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