## 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](https://www.imf.org/en/publications/cr/issues/2022/12/23/argentina-third-review-under-the-extended-arrangement-under-the-extended-fund-facility-527298)

## Other formats

- [Markdown version](/en/publications/cr/issues/2022/12/23/argentina-third-review-under-the-extended-arrangement-under-the-extended-fund-facility-527298/index.md)
- [Structured JSON version](/en/publications/cr/issues/2022/12/23/argentina-third-review-under-the-extended-arrangement-under-the-extended-fund-facility-527298/index.json)
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## Bibliographic details
- Published: December 22, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400227417.002

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### 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.

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## Content in this bundle

- **1argea2022004 - Executive Summary**
  - [1argea2022004 - Executive Summary (Markdown version)](/-/media/files/publications/cr/2022/english/1argea2022004.pdf.md){rel="alternate" type="text/markdown"}
  - [1argea2022004 - Executive Summary (PDF)](/-/media/files/publications/cr/2022/english/1argea2022004.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2022/12/23/argentina-third-review-under-the-extended-arrangement-under-the-extended-fund-facility-527298_