IMF Argentina economy “starting to grow” – DW – 05/16/2024

The International Monetary Fund (FMI) asserts that the adjustment plan Argentina A spokesperson for the financial institution said this Thursday (05/16/2024) that it is producing “better-than-expected results” and expects the economy to “start to grow” in the second half of the year.

The IMF is pleased with the progress after the right-wing populist Javier Miley He assumed the presidency in December with one goal: to drastically cut spending, a plan he called “Chainsaw“.

“The authorities’ strong commitment and strong commitment to action are delivering better-than-expected results,” said Julie Kozak, IMF communications director.

The first quarterly fiscal surplus in 16 years, a “rapid recovery” of international reserves and an improvement in the central bank’s balance sheet, as well as a sharp reduction in inflation, from 25% in December to around 8%. 8% in April.

Kozak reiterated the conclusions of the IMF Technical Committee A deal with Argentina this week In the eighth review of the aid package, it will allow nearly $800 million to be disbursed once it gets the green light from the board.

“These are all important steps in the right direction and we hope the economy will start to grow again in the second half of this year,” but “the road ahead remains difficult,” the spokesman stressed.

The IMF assesses that the government must tackle the crisis from three fronts: fiscal, monetary and formal use of reforms to create employment and attract private investment.

At the fiscal level, it must improve the efficiency of the tax system, but “ensure that social assistance is adequate and targeted to protect the most vulnerable” and that the burden of adjustment “does not fall disproportionately on working families . . .”

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