Argentina: Third Review Under the Extended Arrangement Under the Extended Fund Facility, Request for Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review — Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Argentina
IMF Staff Country Reports, December 22, 2022
Source details
- Canonical URL
- Argentina: Third Review Under the Extended Arrangement Under the Extended Fund Facility, Request for Waivers of Nonobservance of Performance Criteria, and Financing Assurances Review — Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Argentina
Other formats
Bibliographic details
- Published: December 22, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400227417.002
Executive summary and context
- Early decisive policy implementation by the new economic team was critical to stabilizing markets and begin rebuilding confidence in the run-up to the second review.
- Domestic demand slowed in response to tighter macroeconomic policies.
- High frequency indicators point to:
- a further moderation in inflation,
- a contraction in goods imports,
- improvements in the trade balance.
- The situation remains fragile against a more challenging external and domestic backdrop:
- Inflation is still high and unanchored.
- Reserves are low.
- Confidence needs further strengthening.
- Social discontent has risen amid spending restraint and some decline in real wages.
- Review discussions focused on strengthening macroeconomic policies to safeguard stability and achieve program objectives, with emphasis on:
- a durable reduction in inflation,
- improvement in reserve coverage.
Major findings and indicators
- Stabilization and confidence:
- Early policy actions were effective in stabilizing markets and beginning to rebuild confidence prior to the second review.
- Demand and external sector:
- Domestic demand slowed following tighter macroeconomic policies.
- Goods imports contracted.
- Trade balance improved.
- Inflation and reserves:
- Inflation shows signs of moderation but remains high and unanchored.
- Reserves are described as low, requiring improvement in reserve coverage.
- Social and distributional effects:
- Spending restraint contributed to rising social discontent.
- Real wages experienced some decline.
Policy focus and program objectives
- Strengthen macroeconomic policies to:
- Safeguard stability.
- Achieve program objectives.
- Deliver a durable reduction in inflation.
- Improve reserve coverage.
Content in this bundle
- 1argea2022004 - Executive Summary