President of Argentina’s Central Bank assures that inflation “has no magic solution”

Miguel Ángel Pesce, the president of Argentina’s Central Bank (BCRA), stated that there is no “magic solution” to inflation and emphasized that combating the rapid price increase requires more than just economic growth.

Pesce addressed the issue during his speech at the Monetary and Banking Conference 2023, emphasizing that believing trade surpluses alone can solve the recurring inflation problem is a mistake.

He highlighted that studies on inflation reveal a significant impact from inertia, which cannot be resolved solely through economic growth.

Argentina has been grappling with high inflation, with official data showing a cumulative increase of 42.4 percent since the beginning of the year as of May.

Pesce emphasized that Argentina has faced sustained inflation since the 1950s, except during the decade of convertibility.

He attributed this persistence to the re-emergence of external or internal restrictions on economic growth, leading to strong and lasting inertia.

While discussing future prospects, Pesce predicted a substantial increase in Argentine exports by 2030, driven by energy and mining products.

He anticipated a surplus of over US$20 billion next year and US$41 billion by 2030.

The BCRA president projected optimistic figures for exports in energy, mining, and other sectors, foreseeing growth from US$8 billion to US$36 billion in energy exports, US$3.8 billion to US$15 billion in mining, and US$37 billion to US$54 billion in other products.

Despite the growth prospects, Pesce emphasized that urgent solutions from the Argentine government are needed to address inflation, external restrictions, and the development of the capital market.

More: Argentina news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error