What you need to know about the fiscal accounts…And more

There have been several good pieces of news in the economic front. Inflation has remained subdued, the Government already raised most of the funds that it needs in the international financial markets, while the number of green shoots is rising and the prospects for growth are improving. Last, but not least, the international environment has remained more benign than had been expected in the Trump era, as funds are still flowing to emerging markets, US interest rates have remained stable in the 2.50% range and commodity prices are holding up at reasonable levels.

The primary deficit on a cash basis for 2016 was ARS 359.3 billion, equivalent to 4.6% of GDP, which is above the 4.2% deficit of 2015 but lower than the fiscal target for 2016 that was 4.8% of GDP. This result was displayed in a context in which primary expenditure grew by 38.2% on a year to year basis, while revenues rose 36.3%.