The agricultural sector: from high growth to stagnation

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The agricultural sector: from high growth to stagnation

Noviembre 2013

The agricultural and livestock sector generates around 50% of total exports and is one of the most dynamic and competitive sectors of the economy.

The sector experienced a significant jump in productivity and output in the last decades. However, in recent years it has remained relatively stagnated, as several factors have been hampering new improvements. First, the tax pressure is very high and is damaging new developments. Second, the government intervention in some markets (such as wheat, milk and beef) has worsened incentives and therefore production. Third, the current infrastructure is unable to sustain higher level of production. As a result, a new set of policies is required in order to boost the sector into a new round of expansion.