The International Monetary Fund (IMF) adjusted inflation and economic activity expectations for 2024 and 2025. Thus, over the course of this year the economy would fall 2.8% while inflation would be 150%. While, In 2025 there would be an economic expansion of 5% while inflation would be 45%.
In this context, the team Channel E He contacted the economist Sergio Rodríguez Glowinskiwho spoke about the country’s economic situation and future expectations.
Recession and inflation
“Inflation is clearly declining but we are at levels of 11% monthly“With the previous government we strongly criticized these numbers,” said Rodríguez Glowinski: “The government avoided hyperinflation by drying up the money supply, but this translates into recession.”
“As a result of these policies we see paradoxical phenomena: cost inflation is colliding with demand inflation,” said the economist. “An economic depression occurs when consumption falls above 50%,” he detailed.
Finally, Rodríguez Glowinski said that if there is a sustained drop in consumption, large distortions in the economy.