From Buenos Aires Times · Manuela Tobias, Bloomberg · · 1m 10s
Caputo sees strong recovery, rismisses recession odds
Argentina's economy minister predicts strong growth rebound as inflation eases.
In brief
Argentina's economy minister predicts strong growth rebound as inflation eases. Argentina's economy minister Luis Caputo expects strong fourth-quarter growth and dismisses recession risks despite slowing economic activity. Originally reported by Buenos Aires Times.
Economy minister predicts rebound
Argentina's economy minister Luis Caputo expects strong fourth-quarter growth and dismisses recession risks despite slowing economic activity.
“We don’t see a recession”
Construction and mortgages drive recovery
Caputo says construction and mortgage lending will boost growth as real wages improve and inflation eases.
“I think we will see a significant recovery in construction”
Economic contraction in Q2
Argentina contracted 0.6 percent in the second quarter and again in July, raising recession concerns.
“don’t see that”
Credit growth challenges
Banks report declining delinquencies but credit growth has lost momentum as interest rates fall.
“Banks have said that delinquencies are no longer a problem”
No trade-off between growth and inflation
Caputo rejects the idea that the government must choose between reviving growth and controlling inflation.
“We don’t see that trade-off in the same way as other economists do”
Inflation remains priority
Caputo says disinflation will lower financing costs and spare productive capacity will support growth.
“We remain focused on bringing down inflation because we know that’s what’s best for Argentines”
Debt and funding discussions
Argentina seeks $10 billion in private-sector financing for rail projects and the Taca Taca copper mine.
“We are definitely in discussions and will support the government in their liquidity needs”
What matters most
Argentina's economy minister Luis Caputo expects strong fourth-quarter growth and dismisses recession risks despite slowing economic activity.
