Argentina’s economy is currently a two-faced creature. While exports linked to oil, agriculture, and mining are seeing record numbers, real economy sectors like industry, construction, and commerce are stagnant or in decline. 

For the government, the solution to this problem is to bet on export sectors triggering a “trickle-down” effect on the less favored ones. Nearly three years into the libertarian administration, it is worth asking how effective that strategy has been so far. 

In a recent report, orthodox think tank Fundación Mediterránea puts this issue under the microscope, analyzing the cases of Neuquén — known for the Vaca Muerta oil and gas field —, San Juan, Salta, Jujuy, Catamarca, and Santa Cruz — where metal mining takes place — and Córdoba and Buenos Aires province, where the bulk of agricultural production is located. 

The findings reveal a heterogeneous landscape. While there are marked improvements in some provinces, the most populous regions with greater economic diversification — like Córdoba and Buenos Aires province — are failing to feel the economic trickle-down........

© Buenos Aires Herald