Statement by the IMF’s Managing Director on Argentina
IMF News, July 21, 2018
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- Authors: Arrangement. This
- Published: July 21, 2018
Meeting context
- Ms. Christine Lagarde met with Argentina’s President Mauricio Macri, Finance Minister Nicolas Dujovne and Central Bank Governor Luis Caputo in the context of the Group of 20 Finance Ministers and Central Bank Governors meeting in Buenos Aires.
- Date of statement: July 21, 2018.
- Press Release No. 18/301.
- Media contact listed: PRESS OFFICER: Raphael Anspach; Phone: +1 202 623-7100; Email: MEDIA@IMF.org.
Key messages from Ms. Lagarde
- The meetings provided an opportunity to discuss recent economic developments in the world and in Argentina and take stock of the authorities’ economic reform plans.
- “The Argentine authorities are implementing a decisive reform plan that has the support of the international community and is backed by the IMF, through a Stand-By Arrangement.”
- “Steadfast implementation of the authorities’ plan will stabilize the economy, help lower inflation, improve confidence and lay the foundation for sustainable and inclusive growth.”
Program support and objectives
- IMF backing: the authorities’ reform plan is supported by the IMF through a Stand-By Arrangement.
- Policy aims stated:
- Strengthen Argentina’s economy and bolster confidence by addressing long standing vulnerabilities.
- Protect the most vulnerable.
- Improve gender equity.
- Lay the foundation for inclusive and sustainable growth going forward.
Policy implementation and recent measures
- The government has shown strong commitment to implement their plan so far.
- Central Bank actions: “The Central Bank of Argentina has put in place measures that helped reduce financial volatility and improve transparency.”
- Fiscal and social policy status: “progress is ongoing regarding the fiscal measures for next year and social spending remains above the targets set by the authorities.”
Outlook and expectations
- Short-term expectation: “We expect growth to stabilize in the last quarter of 2018.”
- Medium-term expectation: “and see a gradual recovery in 2019 and 2020, as confidence grows and the cost of capital falls, along with inflation, while exports pick up.”
Statement by the IMF’s Managing Director on Argentina, July 21, 2018.