Mid-term macro assessment: Goodbye growth, hello stagflation

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Mid-term macro assessment: Goodbye growth, hello stagflation

Julio 2012

During the first semester there has been a sharp deterioration in the overall macroeconomic performance. While external factors have played a role, most of the explanation lies on domestic economic conditions and policies.

The most recent figures show a drop in industrial production, investment, construction, retail sales and consumer confidence among other indicators. In the meantime inflation does not show any signs of being receding as wage increases remain in the mid-twenties and the prices of food and beverages are soaring.  Stagflation is the name of the game.