The International Monetary Fund considered it “truly impressive” the progress made in the Argentine economic program, but warned that “Much more needs to be done and much more needs to be done on a broader scale,” he said.. This is what he pointed out Pierre-Olivier GourinchasEconomic Advisor of the organization in a press conference held this Tuesday in Washington.
The manager highlighted that the Argentine authorities are implementing “a very ambitious stabilization plan to restore macroeconomic stability.”
He recalled that this plan “focuses on a strong fiscal anchor “which eliminates, in particular, any financing from the Central Bank to the Government, which was one of the factors that led to a very high inflation number in previous years.”
Results of the Argentine economy
The economist maintained that the program “it is already showing its effects. We see this marked decline in inflation month after month. AND “The progress so far has been really impressive.” Particularly noteworthy is that the Argentine government has been able to register a fiscal surplus for the first time in more than a decade.
However, he warned that “Of course, this is going to take some time and it is going to require rapid and sustained policy implementation. Much more needs to be done and much more needs to be done on a broader scale.”.
For this reason, he explained that the IMF is following the case closely and stated that “Our teams here at the Fund are in close contact with the authorities (Argentines). And he reiterated “The progress, again, has been quite strong.”
Asked about the shape in which the economic recovery will take, whether it will be V, U or L shaped, he responded “Let’s accept that we much prefer the V over the U or the L.”
The organization, on more than one occasion, usually highlights the progress in the implementation of the economic program, as well as warns about the social cost. Recently, the Government took two measures in this regard: it reinforced the allocations for social plans and implemented a new retirement formula to avoid an even greater drop in assets.
Luis Caputo travels to Washington to meet with the IMF
This Wednesday the Minister of Economy, Luis Caputo and his Secretary of Finance, Pablo Quirno They will be in Washington to participate in the IMF Spring Meeting.
The next review, at the Treasury Palace, is confident that it will be approved by the IMF without difficulties, given that all the goals have been met.
It remains to be seen whether the agency will be willing to grant an additional loan to facilitate the exit from the stocks.
Source: Ambito
