IMF Staff Concludes Article IV Mission in Argentina

Press Release No. 06/125
June 9, 2006

An International Monetary Fund (IMF) mission, led by Mr. Ranjit Teja, Deputy Director of the Western Hemisphere Department, issued the following statement in Buenos Aires today:

"An IMF staff team has been in Buenos Aires over the past two weeks to undertake the 2006 Article IV consultation. The mission met a broad range of counterparts from both the public and private sector. The discussions covered the significant economic and social achievements that Argentina has made in recovering from the financial crisis, and the challenges ahead.

"The government's post-crisis policy framework has played an important role in bringing about the positive results of recent years. At the same time, inflation, and the policies being applied to restrain it, have given rise to tensions that will need to be resolved. Given the strong domestic demand momentum, the mission recommended a policy mix that involves additional fiscal and monetary policy action to contain price pressures. There was strong agreement with the Argentine authorities that higher investment was needed over the medium term, and the mission recommended reforms to sustain competitiveness and encourage future investment.

"The mission's recommendations are summarized in a brief concluding statement that was left with the authorities.

"We would like to thank our interlocutors for their cooperation, hospitality, and the high quality of the dialogue. In the coming weeks, the team will prepare the 2006 Article IV consultation report, which will be considered by the Fund's Executive Board in late July."



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