Por Miguel A. Kiguel
Todos sabemos cómo funciona el cepo, y hemos aprendido a vivir con tasas de interés reales negativas, a usar el dólar Contado con Liqui para eludir los controles...
How much the public debt burden increased?
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How much the public debt burden increased?
Fourth week
July 2018
The recent rise of the exchange rate increased the size of public debt compared to GDP. How much exactly? Net public debt, which excludes holdings of public debt by the public sector itself, would be around 38.5% of GDP by the end of the year. This represents an increase of 10 percentage points compared to one year ago. Gross debt would be around 65% of GDP, displaying a similar annual increase.
In order to understand how much the debt-to-GDP ratio increased, we have to divide the answer into two parts. As for the numerator, we have to understand how public debt was modified after the agreement with the IMF, the last debt issuances and cancellations, and the recent rise of the exchange rate. As for the denominator, we have to understand how much GDP measured in current dollars fell, due to the recent exchange crisis and the resulting rise of the exchange rate.
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