Diego Giacomini, an economist and former partner of Javier Milei, has once again criticized the direction the president is taking, questioning the sustainability of the positive data on inflation and warning about the two variables that concern him the most.
In an interview on Radio 10, Giacomini expressed his skepticism about the slowdown in inflation, considering it unsustainable. He argued that the inflation in dollars over the past 11 months has been 98%, and projected that by the end of November, if the blue exchange rate and the liqui-counted rate remain stable, inflation in dollars would reach between 105% and 110% in 12 months. According to him, this situation has led to a reduction in the dollar value and the exchange rate, which complicates the arrival of investments in the country.
The liberal economist also noted that the president has the worst levels of investment, representing 14% of GDP, compared to the last 6 presidents. Giacomini emphasized the two variables that concern him the most in the economy: the level of activity and private investment.
Regarding economic activity, Giacomini opined that we are still far from a consolidated recovery and mentioned the lack of harmony between the real economy and the financial economy as a problem, which will eventually be corrected with an adjustment of the latter towards the reality of production.
As for private investment, Giacomini indicated that it is at the lowest levels in 10 months of government, compared to the last 6 presidents. He highlighted that investment represents 14% of GDP, while, to maintain a constant installed capacity, an additional three percentage points would be needed.
These statements from Giacomini reflect his concern for the current economic situation and pose significant challenges that the country faces in terms of inflation, investment, and economic activity.
