In a speech before the Chamber of Construction (Camarco) on Tuesday, economist Emmanuel Álvarez Agis discussed the impact of the government’s current adjustment policies on the construction sector. He noted that public works and infrastructure have been particularly affected, with a significant drop in investment in these areas.
Álvarez Agis pointed out that the financial system’s limitations make it essential for the State to invest in two-thirds of public works projects. However, he also acknowledged that external factors such as an unstable exchange rate can pose challenges to investment. The economist compared the current situation to the beginnings of Convertibility in 1992 but noted that privatization opportunities like in the 1990s are lacking to offset financial constraints.
The economist emphasized that without external investments, Argentina’s economic model will not progress, and further IMF or credit organization aid may not be effective given the limited space for continued adjustments. He underscored that strategic planning and a balanced approach to economic policies are necessary for sustainable growth.
In discussing the future of the construction sector, Álvarez Agis projected a decline in investment after ongoing public works are completed. He highlighted challenges such as inflation in dollars, which raises costs beyond salary levels and hinders activity. The economist also criticized the government’s approach to inflation, warning that a severe recession could control it could have devastating consequences on employment and revenue, undermining any growth prospects.
Overall, Álvarez Agis painted a challenging picture of Argentina’s current economic situation, highlighting the need for external investments and strategic planning to facilitate sustainable growth while addressing issues such as inflation and an unstable exchange rate.
In his address before Camarco this Tuesday, Emmanuel Álvarez Agis highlighted how government adjustment policies have affected public works and infrastructure projects within the construction sector.
He emphasized how important it is for state investments to be made in two-thirds of these projects due to limitations within Argentina’s financial system.
While acknowledging external factors like an unstable exchange rate pose challenges to investment, Álvarez Agis compared today’s situation with Convertibility’s introduction in 1992 but highlighted how privatization opportunities were not present during those times.
Furthermore, he underscored how crucial it is for external investments to support sustainable growth within Argentina’s economic model.
Looking ahead at future prospects for construction projects, Álvarez Agis predicted declining investment after ongoing public works are finished.
He pointed out challenges like inflation affecting salaries and raising costs above what was previously possible.
Criticizing government approaches towards inflation control measures as being too severe potentially leading to devastating consequences such as employment loss and reduced revenue if executed poorly.
