IMF sees ‘signs of an incipient recovery’ in Argentina
The International Monetary Fund sees "signs of an incipient economic recovery" in Argentina, but tackling high poverty rates "remains a priority," a spokeswoman for the financial organisation said Thursday.
Since the nation's most recent review of its US$44-billion loan programme with the IMF, Argentina's eighth, President Javier MIlei's government has "continued to implement the programme," resulting in "a reduction in inflation and the fiscal deficit, and there are signs of an incipient recovery in activity and real wages," said IMF official Julie Kozack at a press conference in Washington.
However, challenges remain, including "high poverty rates and ensuring that growth is more inclusive," she added.
"The authorities have expanded well-targeted social assistance programmes that benefit poor women and children," claimed Kozack.
In the first three months of the year, Argentina posted a fiscal surplus of 0.4 percent of gross domestic product, albeit at the cost of a contraction in economic activity. GDP fell 1.7 percent in the second quarter from the previous quarter, deepening the ongoing recession and unemployment.
According to the Fund, "continued measures to reduce inflation and reforms to boost employment and investment should lead to further improvement in real wages and economic activity in the future."
--TIMES/AFP