Former Indec head suggests Argentina may soon 'enter stagflation period'

Argentina will only grow at a 2 percent rate this year but it prices will continue to rise dramatically, which will bring the local economy to a period of “stagflation,” former Indec director Víctor Becker said.

“I think we will have an outlook of less growth. With a lot of luck we will end the year with growth that will not make it above 2 percent and with some dramatic price increases, similar to the ones we’ve had in the last few years. Everything suggests we’re headed to a stagflation period,” the economist said.

“The country is facing a drop in the development rate and it is in danger of entering a recession period,” Becker explained, adding that “in the last few years everything was done so Argentina would become soy-bean-dependent.”