Argentina: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Argentina

IMF Staff Country Reports, December 29, 2017

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Canonical URL: Argentina: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Argentina

Argentina’s government has made important progress in restoring integrity and transparency in public sector operations.
These policy changes have put the economy on a stronger footing and corrected many of the most urgent macroeconomic imbalances.
Private consumption strengthened in 2017, supported by greater real wages and buoyant credit growth.
With stronger domestic demand, the trade surplus turned into a deficit and the current account deficit increased.
Annual inflation has declined from its peak in 2016, but remained relatively resilient and inflation expectations moved up, prompting the central bank to raise interest rates.
Going forward:
- GDP growth is expected to consolidate.
- Inflation inertia will slowly subside.
- The fiscal deficit will gradually fall.

Private consumption: strengthened in 2017 (driven by greater real wages and buoyant credit growth).
External sector: trade surplus turned into a deficit; current account deficit increased.
Inflation: annual inflation declined from its peak in 2016 but remained relatively resilient; inflation expectations moved up.
Monetary policy response: central bank raised interest rates.
Fiscal outlook: fiscal deficit expected to gradually fall.
Growth outlook: GDP growth expected to consolidate.

Subject areas covered:
- Expenditure
- Government debt management
- Inflation
- Labor
- Prices
- Public debt
- Public financial management (PFM)
- Wages
Keywords highlighted:
- asset recovery bill, CR, debt, GDP, Global, Government debt management, indexation formula, Inflation, inflation expectation, ISCR, labor market reform bill, pension indexation reform law, reform, Wages