Argentina economy faces dollar inflation and slowing activity, warns expert

Marina Dal Poggetto, executive director of the consultancy Eco Go, has warned of rising inflation in dollar terms and a slowdown in economic activity in Argentina. She noted that the government is purchasing fewer dollars and maintains strong regulation over both the exchange rate and interest rates through the Central Bank.

Dal Poggetto provided a critical diagnosis of the productive economy, stating that investment and consumption are not growing, which prevents a significant macroeconomic impact despite increases in imports. However, she noted that certain sectors are decoupling from this contractionary trend, specifically mentioning growth in energy, mining, agriculture, and the financial system driven by credit.

Regarding inflation control, the analyst suggested the government is utilizing both exchange rate and utility tariff anchors to stabilize the Consumer Price Index (CPI), aiming for annual inflation to close near 30 percent.