Emmanuel Álvarez Agis addressed the Chamber of Construction (Camarco) this Tuesday, highlighting the impact of the government’s current adjustment policies on the construction sector. He pointed out that public works and infrastructure have been particularly affected, with a significant drop in investment in these areas. Álvarez Agis emphasized that the Argentine financial system’s limitations make it essential for the State to invest in two-thirds of public works projects.
The economist discussed the transition in management led by Javier Milei, aiming to attract external investments and reactivate credit and confidence. However, he noted that the exchange rate poses a challenge and slows down investment. Álvarez Agis compared the current situation to the beginnings of Convertibility in 1992, but highlighted the lack of privatization opportunities like in the 1990s to offset financial constraints.
Álvarez Agis underscored the importance of the Large Investment Incentive Regime (RIGI) as a key element in attracting investments. He 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.
In discussing the construction sector’s future, Álvarez Agis projected a decline in investment after the completion of ongoing public works. He highlighted challenges such as inflation in dollars, which raises costs beyond salary levels and hampers activity. He also criticized the government’s approach to inflation, warning that a severe recession to control it could have devastating consequences on employment and revenue, undermining any growth prospects.
Overall, Álvarez Agis painted a challenging picture of the current economic situation in Argentina, stressing the need for external investments, strategic planning, and a balanced approach to economic policies to facilitate sustainable growth.