IMF Staff Country Reports

Argentina : 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Argentina

Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

November 10, 2016

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

An inherited legacy of imbalances. Upon taking office in December last year, Argentina’s new government faced pervasive macroeconomic imbalances, microeconomic distortions, and a weakened institutional framework. These encompassed unsustainably high consumption levels, historically low levels of investment, and large fiscal deficits financed by money creation, which led to high inflation. Distortions at the micro level included an extensive network of administrative controls (for example, trade barriers, foreign exchange restrictions, and price controls) and a business environment that eroded competitiveness and undermined medium-term growth. There was also an important weakening of the institutional framework for economic policymaking, perhaps most evident in the loss of credibility of the national statistics agency.

Series:

Country Report No. 16/346

Subject:

Argentina Article IV consultation reports Capital account Current account deficits Debt sustainability analysis Economic growth Economic indicators Economic recession Fiscal policy Foreign exchange reserves Inflation Inflation targeting Monetary policy Press releases Spillovers Staff reports Western Hemisphere