Journal Article
Argentina

This paper analyzes the sustainability of the current growth process in Argentina, taking into account macroeconomic consistency and environmental constraints. The economy appears to be generating an unsustainable current account deficit and a relative price distortion in favor of nontradables, impeding a needed increase in exports. Resolution of the main environmental problems would absorb around 10% of savings over the next 10 years. The saving scarcity suggests that a gradualist policy giving priority to the urban environment should be implemented.