Guzmán forecasts 10% growth for Argentina's economy in 2021

Economy Minister Martín Guzmán said Monday that Argentina's gross domestic production will grow 10 percent this year.

Speaking before Congress, the minister said that the government is continuing its talks with the International Monetary Fund (IMF) to seek a refinancing of upcoming repayments.

Addressing the talks over a deal, Guzmán said that "macroeconomic stabilisation is not possible without a recovery of activity," adding that approach would form part of any agreement to restructure repayments on more than US$44 billion disbursed by the IMF to Argentina under the terms of the record US$57-billion credit-line agreed with the Mauricio Macri administration in 2018.

"Today Argentina is undergoing a process of strong economic recovery process, which will allow GDP to grow 10 percent" in 2021, said the minister.

Gross domestic product (GDP) collapsed 9.9 percent in 2020 amid the global coronavirus pandemic.

Guzmán said the terms of the new agreement under discussion with the IMF were still under strict confidentiality.

At a rally in front of tens of thousands of supporters, President Alberto Fernández said last Friday that Argentina would not agree to a fiscal austerity plan that affects "the future of Argentines."

Argentina faces repayments totalling almost US$40 billion over the next two years under the terms of the deal agreed by the Macri administration. 

Guzmán on Monday defended his draft 2022 budget bill before Congress. It forecasts four percent growth in GDP next year, with inflation of around 33 percent.

Prices in the first 10 months of the year increased by 41.8 percent.

– TIMES/AFP