Buenos Aires, March 15 (NA) – Economist and director of the Libertad y Progreso Foundation, Agustín Etchebarne, stated that the main risk Argentina currently faces is not economic but political, analyzing the country's present situation.
"The main risk today is not economic, it is political. The economy is showing signs of stabilization, but it is still necessary to consolidate the reforms so that this process can be sustained over time," he affirmed.
During the dialogue obtained by the Argentine News Agency (NA), Etchebarne explained that the country has managed to go through a stage of strong macroeconomic adjustment that allowed it to order key variables such as the fiscal deficit and inflation.
However, he considered that this stage is only the beginning of a deeper process. According to him, investors not only observe macroeconomic indicators but also the stability of the rules of the game and the political system's ability to sustain reforms over time.
"Investors look at institutional stability, predictability, and the ability to maintain reforms. If the process is interrupted for political reasons, this could seriously affect the recovery," he warned.
In line with this, the economist stated that the challenge ahead will be to consolidate a political framework that allows for second-generation reforms, such as changes to the tax, labor, and pension systems.
"The macroeconomic adjustment was a necessary condition, but not sufficient. Argentina still has a very complex and costly tax system, in addition to regulations that make production more expensive and discourage investment," he explained in the interview published by Newsweek Argentina.
Etchebarne also emphasized that, in addition to economic factors, institutional confidence plays a central role in investment decisions.
"If Argentina manages to maintain stability and advance with structural reforms, it has enormous potential to grow. Among them, he mentioned the high tax pressure, the rigidity of the labor market, the lack of long-term credit, and regulatory difficulties. But for that, it needs political predictability and clear rules," Etchebarne concluded.
