Argentina Imposes Austerity Measures in Bid to Stabilize Peso
Argentina has announced austerity measures in a bid to tackle the "emergency" created by the country's currency crisis. In a televised address, President Mauricio Macri said Argentina could not keep spending more than it earned. Taxes on exports of some grains and other products will rise and "about half" of the nation's government ministries will be abolished.
The government has not said which ministries will be closed or merged. Argentina is the biggest exporter of soy meal and soy oil and is also a big producer of corn, wheat and raw soybeans. From 1 January, those primary exports will be taxed four pesos for every dollar in value. Processed products will be taxed three pesos for every dollar in value.
Mauricio Macri is doubling down on his promise to reform the economy. His government has announced it will go far beyond its targets set with the IMF back in May. By next year, Argentina says it will have its budget balanced, so that it spends exactly as much as it earns before interest payments (previously its target was of a deficit of 1.3% of its GDP). By 2020, it hopes to produce a 1% surplus in its budget.
The government has not said which ministries will be closed or merged. Argentina is the biggest exporter of soy meal and soy oil and is also a big producer of corn, wheat and raw soybeans. From 1 January, those primary exports will be taxed four pesos for every dollar in value. Processed products will be taxed three pesos for every dollar in value.
Mauricio Macri is doubling down on his promise to reform the economy. His government has announced it will go far beyond its targets set with the IMF back in May. By next year, Argentina says it will have its budget balanced, so that it spends exactly as much as it earns before interest payments (previously its target was of a deficit of 1.3% of its GDP). By 2020, it hopes to produce a 1% surplus in its budget.
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