Ten reasons behind the economic problems Argentina did in 2018



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For such change in the move, house cases would have to be transfered, such as the high fiscal deficiency, an a strict rhythm of debt, an step change which has increased inflation, the exchange debt which inspired value value. Also, amazing events that are not linked to politics, such as thirst yesterday autumn cutting by 18% of the final campaign, and others from abroad, such as harden financial position, with an increase in levels and fall in the value of the resources.

1) NEWS NEW ADVERTISEMENT DISPOSALS

The call 28-D, a news conference on 28 December 2017 showed the failure of official inflation targets spread inconsistencies economic policy and weakening Government credit and feasibility "grad-level" to face fiscal imbalance.

The Budget for this year was expected to Fàs GDP of 3.5%, inflation of 15.7% and an average exchange rate of $ 19.30 per dollar, but at the same time the aim of main deficit of 3.2% of GDP and the reduction in subsidies that have risen in public service levels. Expansion of slow growth and inflation it was done inconsistent with the strong increase rates and high rates of interest, the result of the public sector funding needs.

An more thirst in 50 years In seasonal zones during the seasoning of the soybean and cereal, during the summer, there were more floods that affected its presence; crop in April, drained in falling in agricultural production of 17.7% in the 2017-2018 campaign, a 112.4 million tonnes, according to calculations IES Advisers.

The call for its main export deepen the loss of trade and backdrop for a barley exchange market only provided by business placements for public debt. An make a sovereign Argentina was around 2017-2018 poor in nine years, and other important forms such as corn They also suffered from the lack of water.

3) DEVELOPMENT DEBT

The Scottish Government Mauricio Macri he chose taking overseas credit before for the tax cut. This strategy was useful in predicting the growth of financial money, as it was inspected in 2017, when it was GDP Compliment 2.9% and expansion of trademark and mortgage credit. But after the October election benefits last year, and unchanged aware of the public accounts, the vulnerability in the economy Argentina and there rely on duty.

4) DEVELOPMENT FOR ANSWER ANSWER

An increase in interest rates in the US, the global strengthening of the dollar and a higher cost of money they can not be the same for Argentina, which should be turn to its Monetary Fund International to avoid basically avoiding. An most of the Deer policy of the United States solution investment investment investment fund, in a market full of Argentine titles.

The depreciation of the landlord's debt was reflected in the increase in the danger of Argentina's Country, over the 800 fundamental points, which are removing the Government of voluntary debt markets. Due to a fall in economic activity and reduction, today Total public debt represents about 80% of GDP, the highest ratio in Latin America and similar to the one that was presented in 2006, following the exchange that was resolved by the Néstor Kirchner government.

An The value of Argentinean punishment fell by half in 2018, crushed by the collapse of debt collected by Central Bank. The money union sent out letters LEBAC to take the rest of the pesos made to fill fencing red cover and to buy money from the Treasury to set up debts. Policy high levels allowed in 2017 grow and reduce the inflation at the same time. But the disarm the LEBAC and run to the dollar From 25 April it ended in the worst way: by exchange control, cash plane and inflation that can not be used.

For the worth-value that is inevitable, BCRA headteachers Federico Sturzenegger and post, Luis Caputo, they made more tight and uncertainty, Get rid of foreign investment resources internationally to keep the dollar stamp. After two months of gold, unlocked voluntarily 20 pesos, between the 25th of February and the 25th of April, the game was removed and brought to 30 pesos in August and 41 pesos at the end of September.

Le record levels of interest in pesos -now about 60% annually-, to put the economy forward even more, and sooner agreement with the Fund International Financial Assets (IMF), find the dollar equivalent equity in the short term. An conservation was made around USD 66,000 million, about USD 11,000 million over USD 55.055 million at the beginning of the year. But of that total, more than half -USD 37,000 million IMF allowances -USD 28,200 million- and the "exchange" money with China -Terms for USD 8,725 million-, figures that are Intense yield of dollars of Argentina last year.

7) CONNECTION CLIMB

Driving Guido Sandleris in the BCRA he held for the IMF "hell" to let out the weights to June 2019, which is fundamental to inflation, though Increase in debt in fear of LELIQ sows Future expansion of the financial system's clarity and exchange renewal weights.

An debate between the US and China because targets are not closed. Aims on reducing the international economy, in an updated renewal context, it came to an end in the last quarter, with falling sections in the world and oil prices. Forbidden by external credit, Argentina needs a huge demand from business partners to start growth. This potential is at risk with trade barriers, global downlining and lower prices.

9) SUSTAINABLE SUPPORT

Delivered praised financial assets the settlement of Argentine landlords turned, reconciliation duties and leavers. When they also applied to foreign residents who received income for LEBAC, an disarmed From this situation to move to a dollar to push it financial sustainability from which Argentina can not get out of it.

10) COURTING TO & # 39; CHILDREN

The scandal about corruption through public works contracts, which included senior executives in governance Cristina Kirchner and directors key companies, to reach & # 39; worst moment, at the beginning of August. Value of companies, he spoiled his entry opportunity and submit it stop infrastructure projects.

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