Due to both the problems arising from the international and internal contexts, the Fund warns in a box that “Tighter policies under the IMF-backed program will be critical to underpin stability and contain inflation, which is now projected to reach 95% by the end of 2022.”
In this way, the document follows the guidelines proposed on different occasions by the directors of the Fund. It should be remembered that, after the last approval of Argentina’s performance, the head of the agency, Kristalina Giorgieva He argued that “prudent macroeconomic policies and firm implementation of the program will be needed to address a still fragile situation, strengthen stability and achieve the objectives.”
In accordance with what is projected by the Argentine authorities, the Fund projects that the growth of the Argentine GDP will be at 4%, but it warns that “downside risks dominate this outlook.”
The projections also contemplate that the country will continue to comply with the fiscal consolidation processsince it estimates a primary fiscal deficit of 1.9% of GDP for the current year and 1.4% for the next.
The Minister of Economy, Serge Massa, repeatedly stated that the country will comply with the guidelines of the program agreed with the Fund. In this sense, and after a new normalization of international financial relations by the agreement reached with the Paris Club, the Palacio de Hacienda is confident that the goals of the program will be met again by the end of the year.
Source: Ambito
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