The organization’s spokesperson Gerry Rice decided to take a single question from Argentina and it was the correspondent in the United States of the newspaper La Nación who asked: “What is the most important challenge that the Argentine program faces in order to succeed: inflation, aggravated by the war in Ukraine, or the political division in Argentina. And how do you think the program will be recalibrated in the next revision?
The head of the Fund replied: “we have common objectives that consist of having a program that can be successfully implemented and that helps Argentines, so the challenges we face are related to implementation”.
He added that “a better implementation must be calibrated by combining the changes in the global economy for Argentina, some of these changes have been positive because the country is an exporter of raw materials.”
Regarding the first revision of the program, scheduled for the beginning of May, Giorgieva pointed out that “it has accelerated so very soon you will be asking our team and the Argentine authorities about the results of the review as it progresses”
more growth
In any case, the agency is more optimistic about Argentina since in its World Outlook (WEO) report released this Tuesday, growth was corrected upwards, estimating a GDP increase of 4% for this year and 3% for 2023. It also estimates that it will continue the surplus in the current account of the balance of payments: 0.5% of GDP and 0.4% in 2023.
However, Argentina continues to be on the podium of the countries with the highest inflation. Taking the IMF estimate of 48%, Argentina is the fifth country in the world with high inflation. According to the latest Survey of Market Expectations, where a price increase of 59.2% is estimated, in this case, Argentina would surpass Ukraine (52.4%).
Presumably, this forecast will be modified in the review carried out by the Fund’s mission in May.
Division
Georgieva’s statements were made at the press conference where most of the journalistic concerns were about the possible division of the countries, the war in Ukraine, the sanctions against Russia and the role of the G20 in this new scenario.
“It is a difficult moment and we have to face it” synthesized the head of the IMF and warned that “no country can solve it alone.”
for the body “the risk of further permanent fragmentation of the world economy has increased” that will occur through “Geopolitical blocs with different technological standards, payment systems and foreign exchange reserves.”
This situation represents “the greatest challenge to the rules that have governed international and economic relations in the last 70 years,” states the World Panorama report.
It also warns that “the situation could worsen if the war worsens, if sanctions against Russia escalate, due to a more pronounced slowdown than expected for China or if a more virulent variant of Covid 19 breaks out.” For all of the above, the IMF considers that “multilateral cooperation remains essential”
Source: Ambito

David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.