Further reforms needed for a stronger and more inclusive Argentine economy

Argentina

(OECD)

This article is brought to you in association with OECD.


The Argentine economy is expected to begin emerging from its deep recession in 2019, but significant risks remain. Recovery from the crisis will require new efforts to restore confidence, build solid macroeconomic foundations, improve governance, create jobs and ensure that future growth is greener and benefits all Argentinians, according to a new report from the OECD.

The latest OECD Economic Survey of Argentina looks at the factors behind the country’s recent downturn, as well as policies that can lay the foundation for a stronger and more inclusive economy. The Survey projects the economy will contract by 1.5% this year before returning to a 2.3% growth rate in 2020.

The Survey, presented in Buenos Aires by Alvaro Pereira, director of the country studies branch in the OECD Economics Dept., and Argentina’s Minister of Treasury Nicolás Dujovnehighlights the importance of maintaining momentum on the ambitious economic reforms launched in recent years as well as gains to be made from greater integration in global trade.

“The Argentine economy has extraordinary potential, but economic policies have held back performance,” Mr Pereira said. “The severe economic crisis that unfolded during 2018 has pushed the economy into a deep recession, which requires immediate action to restore confidence and unwind significant fiscal and external imbalances. Looking ahead, the priority will be to speed up the reform process while ensuring that policies are in place to protect the most vulnerable groups and enable a return to stronger and more inclusive growth.”
The Survey shows how fiscal policy can be used to restore confidence, improve macroeconomic performance and promote more inclusive growth. Adherence to fiscal commitments will solidify public finances and convince markets of Argentine authorities’ willingness to resolve serious imbalances accumulated over many years. Remaining fiscal space can be used for well-targeted spending on social transfers to vulnerable groups.

Structural reforms will be key to foster future growth. Reducing domestic regulatory barriers to entrepreneurship and market entry, including at the level of provincial and local governments, will strengthen competition and boost activity. Strengthening the operation and financial autonomy of the anti-corruption office and guaranteeing adequate resource to fulfil its mandate would improve the business environment.

The Survey underlines that Argentina is significantly less integrated into the world economy than other emerging market economies, with high tariff barriers that shield it from international competition and often slow integration into global value chains. To foster Argentina’s integration into the global economy, the Survey highlights the need to reduce tariff and non-tariff barriers, starting with intermediate inputs and capital goods. Reducing trade barriers would raise consumer purchasing power, especially for low-income households, and would reduce firms’ costs, while pushing companies in currently shielded sectors or industries to become more productive.

The Survey recognises that while stronger integration presents large untapped potential for improving the living standards of all Argentinians, it also implies challenges for workers, as jobs may move across firms and industries. Such changes in the structure of the economy are necessary, as many jobs are currently trapped in activities with limited potential for productivity and wage growth. At the same time, policies must support workers in the transition. Ensuring a strong social safety net and bolstering adult training programmes and vocational education are key policy priorities, the Survey said.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

St. Vincent and the Grenadines breaks a record, as smallest ever Security Council seat holder

New round of bargaining for the 2014 EU budget late in autumn

Trump badly cornered at home by agribusiness and steel consumer lobbies: Trade

From UN Assembly podium, Central African Republic leader appeals for lifting arms embargo

Infinite Oath

Guterres calls for ‘maximum restraint’ following drone assault on key Saudi oil facility

JADE at European Business Summit 2015

One-sixth of the world’s economy has now pledged to cut CO2 to zero by 2050

Monday’s Daily Brief: Independent UN experts on Myanmar, UN chief renounces attacks in US, Libyan airport violence, UN spokesperson on Kashmir, and FAO and Italy on development

UN ready to rise above political fray and help Venezuelans based ‘on need, and need alone’

New Erasmus: more opportunities for disadvantaged youth

Subsidiarity and Proportionality: Task Force presents recommendations on a new way of working to President Juncker

Cybersecurity should be a source of hope, not fear. Here are 5 reasons why

Health equity and accessibility for migrants is a peremptory demand

Vaccinations and the movement of anti-vaccers

It’s people, not technology, that will decide the future of work

Fake news: What it is, and how to spot it

Eurostat: Real unemployment double than the official rate

Groundbreaking cancer-fighting drugs now included in updated UN list of essential medicines

African Peace Facility: African Union Peace & Security Operations boosted by an additional €800 million from the European Union

The US may be “open” to reviving TTIP, while the EU designs the future of trade with China

Oslo leads the way in ‘Breathe Life’ campaign for cleaner cities in climate change era

Guterres underlines climate action urgency, as UN weather agency confirms record global warming

Everybody against Germany over the expensive euro

COP21 Breaking News_03 December: Unprecedented Global Alliance for Buildings and Construction to Combat Climate Change

A machine din

‘Comprehensively include migrants’ or sustainable development won’t happen, warns General Assembly President

We must build resilience to face the future – but will we be fast enough?

October’s EU strong digital mix: From Safe Harbour to Net Neutrality, Roaming and Snowden

The four top Americans who flew to Europe perplexed things about Trump’s intentions

Deal on tightening the rules to stop terrorists from using homemade explosives

Arlington, USA: kick-off of the fifth round of the EU-US boxing match

Governments adopt UN global migration pact to help ‘prevent suffering and chaos’

Extra mild ECB tapering of QE and zero interest rates keep euro low

4 ways the US can take the lead in the fight against human trafficking

No better year for the EU’s weak chain links

CLIMATE CHANGE FOCUS: Cows, coffee and sustainable farming

An open letter from business to world leaders: “Be ambitious, and together we can address climate change”

Electronic or conventional cigarettes – which is safer?

EU budget: Reinforcing Europe’s cultural and creative sectors

What business leaders can learn from jazz

UN boosts humanitarian appeal to help tackle Zimbabwe’s ‘worst-ever’ hunger crisis

China is among the 20 most innovative economies for the first time

‘Global sisterhood’ tells perpetrators ‘time is up’ for pandemic of violence

One person dies by suicide every 40 seconds: new UN health agency report

AI-driven companies need to be more diverse. Here’s why

A call for a new crop of innovators

EU leaders agree on 2030 Climate and Energy Package: is “flexible” brave enough?

This is why people live, work and stay in a growing city

Gas pipeline in the European Union. (Copyright: EU, 2012 / Source: EC - Audiovisual Service / Photo: Ferenc Isza)

EU Investment Bank approves € 1.5bn loan for Trans Adriatic Pipeline (TAP)

Nitrate pollution of water sources: new impulses for EU Water Policy?

A quarter of Pacific islanders live below ‘basic needs poverty lines’, top UN development forum hears

It’s EU vs. Google for real: the time is now, the case is open

IMF launches a new offensive against Germany

Why the financial scandals multiply?

6 ways least developed countries can participate in the 4IR

Fisherwomen of Lake Chad show optimism in face of multiple challenges

On our way to China

Cheese energy could power hundreds of UK homes

EU: Huge surplus in the trade of services with the rest of the world

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s