With each passing week the feeling that the Argentine economy is approaching the one we experienced in the eighties cannot be avoided. It does not mean that the situation will be exactly the same nor that hyperinflation cannot be avoided.
The macroeconomic problems remain the same. Policy dilemmas have not changed, but the situation is rapidly deteriorating, and the outcomes remain uncertain.
The new administration is moving very quickly to establish a new policy regime that addresses the main obstacles that have been affecting investing and growth.
The economy grew 5.2% in 2022, mostly driven by 2021’s statistical carryover. Investment displayed the highest growth rate (10.9% y/y), followed by private consumption (9.4%).
