Concerns are growing about future economic measures, particularly among small and medium-sized enterprises (SMEs). The government plans to “dry up” the pesos in the economy, which will hinder SMEs’ ability to access loans, potentially leading to the survival of only large companies. To delve deeper into this issue, Canal E spoke with market analyst Leonardo Alberto.
Leonardo noted that the markets reacted negatively last week when the government announced this second phase of economic measures. He explained that the country risk index rose sharply, along with significant increases in financial dollar rates. Though there was a subsequent drop, it primarily related to inflows into the financial sector.
Despite various government actions, the economy isn’t showing signs of recovery, apart from a slight uptick last month. This boost is mainly attributed to sectors tied to agriculture and energy production.
Looking ahead, Alberto expressed concern about the economic activity in 2024. He indicated that if one considers a full year, the recent acceleration in economic activity might not surpass the growth seen in June and July of the previous year. Overall, he highlighted a significant decline, estimating a potential 5% drop in GDP for 2024 across all economic sectors.
Additionally, the market analyst pointed out that drying up the peso market primarily benefits those with enough capital to withstand periods without access to credit. He emphasized that many entrepreneurs in Argentina rely on their own funds for working capital.
In conclusion, drying up the pesos in circulation means a lack of credit for SMEs, which threatens their survival. Only those with sufficient capital to finance their investments on their own will likely endure, according to Alberto.
Source: https://www.perfil.com/noticias/canal-e/secar-la-plaza-de-pesos-significa-que-no-haya-creditos-para-las-pymes-asevero-un-analista-de-mercados.phtml
