IMF forecasts for Argentina: the economy will grow 2% this year

The International Monetary Fund predicted this Monday that Argentina will grow by 2% in 2023, less than last year.

In an update to its Global Outlook Report (WEO), the Fund focused on analyzing growth in the world's major economies.

They forecast

of 2.9%, due to the impact of the war in Ukraine, the outbreaks of covid in China and inflation.

Although conditions have been softening in the last six months, the IMF warns of risks that could still affect global growth.

Although the global report did not develop the situation in Argentina, they projected that our country will grow by 2% in 2023, a drop

The IMF forecasts growth of 2.5% in the Argentine economy this year.

Photo: Juano Tesone

The Fund maintained the prospects for Argentina with respect to October, when the last report was released at the agency's annual Assembly.

"We expect some slowdown in the coming years, so growth in 2023 is projected at 2%, this is the same as the October forecast, it is more or less in line with what we expected," he told

at a press conference. virtual from Singapore Pierre Olivier Gourinchas, the Fund's Chief Economist.

"This is in combination with the slowdown of the global economy and the adjustment policies in the country, monetary and fiscal to control the very high inflation that the country is experiencing," he said.

In 2022, Gourinchas highlighted, inflation was close to 100%.

The official highlighted continuing on the path established in the Fund's program: "

which will help anchor inflation going forward." .

Argentina follows a program with the Fund, which constantly monitors the numbers of the economy.

Stability

Approving the last review in December, the agency said in a statement that "prudent macroeconomic management and efforts to mobilize external financing are supporting macroeconomic stability:

, inflation is moderating, the economy is improving. trade balance and reserve coverage is being strengthened”.

This is the framework with which they would have adjusted the outlook upwards.

However, they cautioned that while "advances have been made,

and robust program implementation is essential going forward."

And they pointed out the importance of continuing with the fiscal adjustment to reach the goal of 1.9% of GDP in 2023.

washington correspondent

BC

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