Statement by the First Deputy Managing Director on Argentina
IMF News, February 23, 2024
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Bibliographic details
- Published: February 23, 2024
Visit overview
- Press Release No. 24/55
- Location and dates: Buenos Aires, Argentina — February 21-22, 2024 (statement dated February 22, 2024)
- Issued by: IMF Communications Department, MEDIA RELATIONS
- Press officer: Jose Luis De Haro
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- Speaker: Gita Gopinath, International Monetary Fund First Deputy Managing Director
Key observations from the visit
- Characterization of visit: "I had an excellent first visit to Buenos Aires."
- Direct engagement: Met a "wide range of stakeholders" and heard "first-hand" about progress and hardships facing the Argentine people.
- Recognition of opportunities: Argentina "has tremendous human potential as well as unique opportunities in energy, mining, and technology."
Meetings with government and IMF assessment
- Government counterparts met:
- President Javier Milei
- Chief of Cabinet Nicolas Posse
- Economy Minister Luis Caputo
- BCRA President Santiago Bausili
- IMF appraisal:
- Noted "important initial gains in restoring macroeconomic stability and establishing a strong fiscal anchor."
- Emphasized remaining challenges: continued efforts required on monetary and FX policy to "bring down inflation, rebuild reserves, and strengthen credibility."
Policy guidance and near-term priorities
- Monetary and FX policy:
- Need for "consistent and well-communicated monetary and FX policy" to continue disinflation, reserve rebuilding, and credibility enhancement.
- Social protection and distributional considerations:
- Given "near-term stabilization costs," recommended "sustained efforts to support vulnerable segments of the population and preserve the real value of social assistance and pensions."
- Stressed the importance of ensuring "the burden of the adjustment does not fall disproportionately on working families."
- Called for pragmatic work to "build social and political support" to secure "durability and effectiveness of reforms."
Views from broader society
- Stakeholders consulted included academics, labor, civil society organizations, and private sector firms.
- Common messages:
- Broad recognition that Argentina needs "market-oriented reforms to reverse a long-term decline in living standards."
- Reforms should be "designed and sequenced to ensure sustained and inclusive growth."
IMF engagement going forward
- Commitment: "My team and I will continue working closely with President Milei and his team to support their efforts to restore stability and strengthen growth for the benefit of all Argentines."
- Closing remark: Expression of gratitude for "the warm hospitality I received during my first visit to this beautiful country."
Statement by the First Deputy Managing Director on Argentina — February 22, 2024