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Kristalina Georgieva said that inflation in Argentina "is falling faster than we initially expected"

2024-04-18T18:31:24.800Z

Highlights: The managing director of the International Monetary Fund, Kristalina Georgieva, said this Thursday that Argentina is moving very quickly to adjust fiscal spending. He assured this within the framework of the organization's Assembly in Washington. And he added that the fiscal adjustment is also advancing rapidly. The Fund predicted a decline in the Argentine economy of 2.8% this year and a rebound to 5% next year. Regarding inflation, the Fund projected 150% by end of 2024 and 45% by end of 2025. But the government is also enthusiastic about a new program that expands the loan to Argentina, with some US$ 15,000 million that would be used to get better performance from the country, he said. The eighth review of the program should be completed in mid-May and would allow a disbursement of some US $ 770 million, he added. He also noted that "inflation in Argentina is falling faster than we initially expected." and that the country is attracting private investment.


He assured this within the framework of the organization's Assembly in Washington. And he added that the fiscal adjustment is also advancing rapidly.


The managing director of the International Monetary Fund,

Kristalina Georgieva,

said this Thursday that Argentina

“is moving very quickly

” to adjust fiscal spending and that

“inflation is falling faster than we initially expected

. ”

In a press conference within the framework of the IMF and World Bank Assembly, Georgieva referred to the country when talking about growth in Latin America.

“If we look at Argentina, which has long been perceived as a laggard country from the point of view of reforms, we see that it is now moving very quickly in fiscal adjustment. The country is

attracting private investment

to seek better performance,” said the official.

He also noted that “

inflation in Argentina is falling faster than we had initially expected.”

In its global outlook report presented on Tuesday, the Fund predicted a decline in the Argentine economy of 2.8% this year and a rebound to 5% next year. Regarding inflation,

it projected 150% by the end of 2024 and 45% by the end of 2025.

Georgieva's definitions come when the Minister of Economy

Luis Caputo

; The head of the Central Bank

Santiago Bausili

and the Chief of Staff

Nicolás Posse

participate in the Assembly of the organization and the G20 with ministers from around the world.

Beyond the global meetings, Argentine officials take advantage of the trip to

sharpen the eighth review of the program,

which should be completed

in mid-May

and would allow a disbursement of some US$ 770 million.

But the Government is also enthusiastic about a new program that expands the loan to Argentina, with some US$ 15,000 million that would be used fundamentally

to be able to get out of the stocks

. However, spokeswoman

Julie Kozack

said weeks ago that it was

"premature"

to talk about the issue.

Although there were no official announcements,

it is possible that the Argentines will meet with Georgieva at some point or more possibly with Gita Gopinath, the

Fund's number two, who was in Buenos Aires last month and closely follows the evolution of the plan. Milei and compliance with the program.

In the afternoon,

Caputo and Posse will go to the Treasury, where they will see Jay Shambaugh, Janet Yellen's right-hand man

, who was in Buenos Aires in December and is closely following the Argentine case.

Washington monitors the evolution of the Argentine economic plan. The role of the Treasury is fundamental for any negotiation or new program with the Fund, since the United States is the organization's main shareholder and its vote has more weight than any other country on the executive board.

Both will then walk a few steps towards the White House to meet with the new

Security Advisor for Latin America,

Dan Erikson, who replaced Juan González days ago.

Caputo will meet on Friday with the president of the Inter-American Development Bank (IDB), Ilan Goldfajn, who also met with President Milei last week in Miami.

Source: clarin

All business articles on 2024-04-18

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