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ARGENTINA | 03-02-2020 13:52

Kulfas: there is no ‘magic way’ to recovery on a very short term

The Minister of Productive Development and prolific author, Matías Kulfas, affirmed that there is no magic trick to reactivate the Argentine economy in the very short term. Thus, economic recovery should be expected over a much longer horizon as the government tries to curb the recession.

The Minister of Productive Development, Matías Kulfas, stated today that the government is deploying tools to stop the recession, but clarified that officially it is not expected "that in a magic way the economy will start to generate a reactivation in the very short term".

The official confirmed that the Government is confident that the battery of measures that have been announced "in stages" will impact on inflation and bring it down, so he highlighted the role of the Caring Prices plan as part of a broader program.

In a press conference with the Secretary of Domestic Trade, Paula Español, the official explained that the government of Alberto Fernández received "a very disordered economy that has to be ordered in parts.”

He affirmed that the Solidarity and Productive Reactivation Law was the first phase that has generated a new framework in many aspects, especially in the fiscal area, because the national state was "very complicated.”

That rule, said Kulfas, also collaborated in new guidelines for the most complicated socioeconomic sectors, to which was added the AFIP moratorium to relieve SMEs, in addition to the monetary policy of lowering rates.

"It is a stage-by-stage scenario, we do not pretend that in a magic way the economy starts to generate a reactivation in the very short term. Yes, I insist, we are generating new guidelines and I think we are giving very clear incentives," he claimed.

Kulfas highlighted Fernández's political decision to modify "the logic centered on financial speculation" that, he stated, marked the Mauricio Macri government in its four years in office.

"We are putting consumption back at the center of the most neglected sectors, generating incentives so that SMEs can get back on track, developing a reference basket with Careful Prices and seeking social consensus mechanisms to lower inflation," he uttered.

He also declared that this stage of the economic program has as a central element the renegotiation of the foreign debt that is being carried out by the Minister of Economy, Martín Guzmán.

"In this new scenario, we are generating the conditions for economic reactivation and a reduction in inflation with other bases (not only monetary), with coordination, looking for elements so that the functioning of the labor market and others can converge toward a sustained reduction in inflation," he pointed.

He stressed that the dialogue with the business sector is "permanent", because they are seeking to agree on guidelines for more accessible prices, while this year they will work hard with programs to develop small and medium-sized suppliers for supermarkets.

—TIMES/NA

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