IMF Team Statement on Argentina

IMF News, December 10, 2021

Source details

Press Release No. 21/371
Date: December 10, 2021
IMF Communications Department; MEDIA RELATIONS; PRESS OFFICER: Maria Candia
Contact: Phone: +1 202 623-7100; Email: MEDIA@IMF.org; @IMFSpokesperson
An IMF team, led by Julie Kozack, Deputy Director of the Western Hemisphere Department, and Luis Cubeddu, mission chief for Argentina, met on December 5-10 in Washington, D.C. with a technical delegation from the Ministry of Economy and Central Bank of the Republic of Argentina.

The teams analyzed recent economic developments and discussed the outlook for growth, inflation, and Argentina’s balance of payments.
The teams acknowledged the stronger-than-expected rebound in economic activity and investment in 2021.
Exports grew very robustly in 2021, especially in value-added sectors.
Importance of a policy framework to durably sustain the economic recovery and improvements in social and employment conditions.

Gradually and sustainably improve public finances while allowing for infrastructure, technology, and targeted social spending.
Tackle persistent high inflation through a multipronged approach:
- Reduction of monetary financing of the fiscal deficit.
- Appropriate monetary policy with positive real interest rates.
- Wage-price coordination.
Support building international reserves, including by encouraging foreign direct investment and exports.
Develop the domestic capital market.
Strengthen the effectiveness of public spending.
Improve monetary policy operations.
Secure broad support—both domestically in Argentina and within the international community—for overall success of the economic program.

Progress was made on steps to develop the domestic capital market, strengthen the effectiveness of public spending, and improve monetary policy operations.
While further discussions are needed, the IMF team and the Argentine authorities remain fully committed to their collective work on a framework and policies for an IMF-supported program.

Source: IMF Team Statement on Argentina (Press Release No. 21/371), December 10, 2021.