Economist Juan Carlos de Pablo highlighted today that the result obtained by the ruling party in the legislative elections brought calm and allowed the government to regain the initiative, so it now does not need to make hasty decisions.
“The specter of the coming global flood has receded. In Argentina, this specter never goes away. But if before the elections you were desperate to buy tickets for Noah’s Ark, today you will not find that rush. “There is room to continue to address real problems,” he said in a meeting with Planexware customers.
In this sense he said that The election outcome had consequences in terms of decision making. The first, according to de Pablo, is that The executive branch is no longer in a hurry.
He continued: “He continues to make decisions, but not out of despair, and not out of feeling that he is on the ropes. He called the governors, they had coffee, but concrete negotiations did not start. If the election result had been different, the result would not have been the same way. So the result brought widespread relief.”
On the other hand, he had too And its implications for how to deal with the relationship with the opposition. He reiterated that “some of the PRO guys in the deputies are now in ‘we think better’ mode. When Mauricio Macri says that he left the dinner with Javier Maile disappointed, what you have to understand is that he bet that if Maile loses he will have a role that he did not have. This is probably quite dynamic. Everyone must absorb the results as much as they can. The key, from a decision-making point, is that the government is no longer in a hurry.”
Regarding the exchange rate, he pointed out that The demand for the peso increased In the face of this, the central bank responds by buying dollars. “Another government could have taken advantage of the increased demand for pesos to finance the fiscal deficit, because why do I need fiscal balance if people want more pesos?” It may be issued for tax reasons. It’s better not to, thank you. Because when things turn around, if you increase public spending or cut revenues, going back is very difficult. On the other hand, if you buy dollars, you get them, and if the demand for pesos falls tomorrow, you say: “Here, here are the dollars.”
Regarding the draft budget, he said this The financial balance “is compatible with many things,” so “it does not exhaust negotiations with the opposition, but rather directs them.”
Meanwhile, about Repair work He said that the question is how big are the problems “related to legislation, jurisprudence, medicine or art.” He added: “Because “If you change the legislation and the problems are not the legislation, they will remain the same.”
Moreover, he noted that there will be an economic revival in a year September There was A 47% year-on-year increase in the dollar value of capital goods imports. “I’m not talking about cars, but about tractors and machines. What do I mean by that? That Someone does something. I say this because of information bias. If you turn on the TV you see that a factory is closing or someone is being fired. Of course, I’m not saying no. But something is happening too. “Someone opens a factory or expands it, because if not, we wouldn’t have this increase in the import of capital goods.”Description.
Finally, he referred to the inflation data for October, which amounted to 2.3%, and said that he did not see the economic team worrying if monthly inflation remained around 2% in the coming months. He concluded by saying: “To continue to reduce inflation, you must continue to apply the same policy, the same recipe.”
At the opening of the lecture, Guido Pinto, Commercial Director of Planexware, commented that its mission is to connect companies so that they work better: “We offer technological solutions so that they can supply, buy and be paid better, with the aim of achieving efficiency and improving processes within a traceability framework.”
Planexware is a 30+ year old Argentinian company that develops and supports 24×7 solutions that connect more than 15,000 companies exchanging more than 8 million documents per month.
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