Economy

Argentine economy has to take the same path as that of Brazil, according to experts

Experts believe that the country will only come out of the crisis if it sets out a deep agenda of reforms

Ler em português

It is possible to renegotiate Argentina’s debt, but for this to be done, it will take more than just settle its outstanding accounts, for it will need to establish a long list of reforms. This path, quite similar to the one being taken by Brazil, is what could lead Argentina back to growth. According to the Argentine newspaper La Nacion, this is the opinion of the specialists who participated in the Annual Conference of the Latin American Economic Research Foundation, FIEL, on Thursday (25), at the Buenos Aires Stock Exchange.

At the event, Daniel Marx, CEO of Quantum Finance, warned that there is still no consensus on the exact amount of Argentine debt. “We recently heard that it is 30% of the gross domestic product. The [IMF] Fund says it is close to 100% of gross product. For us, the calculation gives us about 65% of gross product. If we compare ourselves with other countries, we are not in the worst of situations. We are at a level above several countries in Latin America and below others, such as Brazil,” he told the publication.

ALSO READ: Crisis in Argentina could neutralize the effects of FGTS funds on Brazil’s GDP

Whatever the real number is, it is necessary to look for profound changes, according to these experts, not shortcuts, as Argentina has been used to do for so many years. “To restructure debt, it is necessary to analyse who the authorities are, what the plan is and whether it is feasible,” said Marx.

As a mantra, Rodrovo Santangelo, president of Macroview, listed, almost in chorus with other experts, the reforms needed for the country–and it is, in fact, very similar to Brazil’s: pension and work reforms; recomposition of tariffs and cancellation of subsidies; reformulation of the nation-provinces relationship [what in Brazil is called the revision of the Federative Pact] and tax reform.