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

_IMF Staff Country Reports, December 29, 2017_

## Source details

**Canonical URL:** [Argentina: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Argentina](https://www.imf.org/en/publications/cr/issues/2017/12/29/argentina-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-45530)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/12/29/argentina-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-45530/index.md)
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## Bibliographic details
- Published: December 29, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484335741.002

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### Executive summary and macroeconomic developments
- 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.

### Key findings and indicators
- 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.

### Policy areas and thematic coverage
- 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

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17409.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17409.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2017/12/29/argentina-2017-article-iv-consultation-press-release-staff-report-and-statement-by-the-45530_