OECD expects Argentina’s economy to grow in 2022 amid uncertain outlook marked by omicron variant of coronavirus

Argentina’s economy will grow 2.5% in 2022, after recovering 8% this year, according to the latest Macroeconomic Outlook report from the Organization for Economic Co-operation and Development (OECD). These values ​​show a more favorable outlook than the statistics accumulated in 2020, when the pandemic caused more decisive damage to the finances of public and private administrations.

However, the report warns that poverty levels in Argentina, which exceed 40%, combined with high inflation, threaten an improvement in statistics. He also points out that public expenditure efficiency It could be improved with the reduction of state employment or subsidies to basic services, while maintaining the preservation of social investment, but in this case, better targeted.

For many experts, this dewatering plan coincides with the requirements of International Monetary Fund in renegotiation of the debt. However, they are skeptical of its eventual realization.

it doesn’t seem viable to me This for Argentina, first of all because we have come out of a pandemic and also we are coming out with a very high degree of inequality where the intervention of the State, public expenditure, will be very important to balance these conditions like the market itself, even if there is growth, due to a spill, these things are not resolved», Specifies, for his part, the economist and journalist Raúl Dellatorre.

Perspectives from other Latin American countries

Colombia is the Latin American country that more will grow in 2022, with an estimate of 5.5%, followed by Costa Rica with 3.9%, Chile and Mexico with 3.5 and 3.3% respectively. The rebound in the global economic growth reach 5.6% this year and lose a few points in 2022 and 2023, although still with positive figures.

Threat of the omicron variant for the economy

The authors of the OECD report warn they have been closely monitoring the development of the omicron variant of the coronavirus, since its expansion could affect the growth prospects of the economies of developing countries.

In addition, the organizational document has a special section related to inflation, because it underlines that the acceleration of prices at the world level compromises recovery this is what we see in this study. It also reflects a disparity in economic improvement between different regions.

To avoid such imbalances, the report’s authors recommend a distribution of anticovid vaccines across the world to break down these barriers once and for all, regardless of the concern that today generates knowledge about the new mutations of the coronavirus.

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