Asked what the most important challenge facing the Argentine program is and how she thinks it will be recalibrated in the first review, the head of the IMF replied: “We have common objectives that consist of having a program that can be successfully implemented and that helps the Argentines, so the challenges we face are about 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 review of the program, scheduled for early May, Georgieva noted 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, GDP growth was corrected upwards: to 4% for this year and 3% for 2023. It also estimated that the surplus in the current account of the balance of payments will continue: 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 the highest inflation. Taking into account the last Survey of Market Expectations where a price increase of 59.2% is estimated, in this case, Argentina would surpass Ukraine (52.4%). It is to be assumed that the review carried out by the Fund’s mission in May will modify this forecast.
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”, summarized the head of the IMF and warned that “no country can solve it alone”.
For the organization, “the risk of a greater permanent fragmentation of the world economy has increased” that will occur through “geopolitical blocks 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.
Likewise, it 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
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