{
  "title": "Argentina: First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for a Waiver of Nonobservance of a Performance Criterion, Rephasing of Access, Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Argentina",
  "publication": "IMF Staff Country Reports, August 1, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2025/08/01/argentina-first-review-under-the-extended-arrangement-under-the-extended-fund-facility-569162",
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  "summary": "This paper reviews the first phase of Argentina’s Extended Fund Facility arrangement, highlighting a strong start despite a challenging external environment.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Tight macroeconomic policies facilitated a smooth transition to a more flexible exchange rate regime and the easing of foreign exchange restrictions.\n- Program performance has been generally positive:\n  - The primary fiscal surplus target for end-May was met with a margin.\n  - No central bank monetary financing occurred.\n  - Continued adequate social program coverage was maintained.\n- The mid-June target for net international reserves accumulation was missed due to:\n  - Significant reserve losses.\n  - Limited return of outflows.\n  - Influences from domestic and external uncertainties.\n  - The authorities' preference for price discovery and disinflation."
    },
    {
      "heading": "Economic outlook and projections",
      "content": "- Real GDP growth is projected at 5.5 percent in 2025.\n- Inflation is expected to fall to 20–25 percent by year-end 2025.\n- Maintaining tight and balanced macroeconomic policies is essential to:\n  - Anchor disinflation.\n  - Improve reserve buffers.\n  - Support access to international capital markets."
    },
    {
      "heading": "Reserve dynamics and external environment",
      "content": "- Reserve losses and limited return of outflows led to missing the mid-June net international reserves accumulation target.\n- External and domestic uncertainties, together with policy choices prioritizing price discovery and disinflation, affected reserve recovery."
    },
    {
      "heading": "Structural reform agenda and implementation",
      "content": "- Authorities are pursuing an ambitious structural reform agenda focused on:\n  - Enhancing state efficiency.\n  - Fostering a more market-based economy with flexible product and labor markets.\n  - Attracting long-term investment.\n- Policies will be implemented to manage potential dislocation costs from these reforms."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Continue tight and balanced macroeconomic policies to sustain disinflation and rebuild reserves.\n- Preserve policy credibility to support re-access to international capital markets.\n- Advance structural reforms to improve state efficiency and deepen product and labor market flexibility, while using targeted measures to mitigate short-term social or labor dislocations.\n\nSource: Argentina: First Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for a Waiver of Nonobservance of a Performance Criterion, Rephasing of Access, Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Argentina (IMF Staff Country Report No. 2025/219).\n\n---\n\n Content in this bundle\n\n- 1argea2025003-source-pdf\n  - 1argea2025003-source-pdf (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1argea2025003-source-pdf (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: August 1, 2025",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798229019224.002",
    "Tight macroeconomic policies facilitated a smooth transition to a more flexible exchange rate regime and the easing of foreign exchange restrictions.",
    "Program performance has been generally positive:",
    "The mid-June target for net international reserves accumulation was missed due to:",
    "Real GDP growth is projected at 5.5 percent in 2025.",
    "Inflation is expected to fall to 20–25 percent by year-end 2025.",
    "Maintaining tight and balanced macroeconomic policies is essential to:",
    "Reserve losses and limited return of outflows led to missing the mid-June net international reserves accumulation target.",
    "External and domestic uncertainties, together with policy choices prioritizing price discovery and disinflation, affected reserve recovery.",
    "Authorities are pursuing an ambitious structural reform agenda focused on:",
    "Policies will be implemented to manage potential dislocation costs from these reforms.",
    "Continue tight and balanced macroeconomic policies to sustain disinflation and rebuild reserves.",
    "Preserve policy credibility to support re-access to international capital markets.",
    "Advance structural reforms to improve state efficiency and deepen product and labor market flexibility, while using targeted measures to mitigate short-term social or labor dislocations.",
    "**1argea2025003-source-pdf**"
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