Post by firoj1414 on Feb 14, 2024 6:57:01 GMT -5
Buenos Aires After approving the latest review of the program and a disbursement of 4.7 billion dollars, the International Monetary Fund ( IMF ) insisted that the plan agreed with Argentina and President Javier Milei focuses on a strong fiscal anchor, with a “ “major” initial adjustment of around 5 points of GDP, actions to rebuild reserves, boost trade to achieve surpluses and correct relative price imbalances. It also provides for the expansion of social assistance to protect the most vulnerable. Throughout the staff report, a 119-page document, concern is reiterated about the high risks facing the program resulting, among other things, from a divided Congress and a fragile social situation that present significant challenges for the implementation of the Government plan.
The risks of the program remain high , reflecting a very difficult legacy, as well as a complex political and social context, with a fragmented Congress, falling real wages and high poverty,” says the document prepared by the staff of the multilateral organization, which He visited Argentina weeks ago to negotiate the new agreement with government authorities. The Fund recognizes the Swaziland Email List risks that the Milei policy package will not initially meet its objectives, which will require agile policy formulation, contingency plans and the need to further expand social assistance. The document says that the ruling party must form broader coalitions in Congress, “since the president's own party (La Libertad Avanza) has minorities in both the Lower House and the Senate.
In any case, they point out that in conversations with political advisors and members of various political parties, "They suggest that there is central support in Congress to achieve progress in key areas." IMF projections for Argentina According to the staff report, “Inflation will accelerate in the near term as relative price imbalances and other price controls are removed.” He estimates a surplus in the trade balance for this year “supported by a rebound in agricultural exports and further improvements in the energy balance.” According to the IMF, which projects adrop inonomy would begin to recover in late 2024, as initial headwinds dissipate and distortions are eliminated, although policies will need to continuding fiscal policy, it indicates that the authorities aim to achieve a primary surplus"consistent with general equilibrium, mainly through a combination of temporary (trade-related) taxes and efforts to reduce administrative costs, energy and transportation subsidies, discretionary transfers to provinces and state-owned companies, and infrastructure spending.
The risks of the program remain high , reflecting a very difficult legacy, as well as a complex political and social context, with a fragmented Congress, falling real wages and high poverty,” says the document prepared by the staff of the multilateral organization, which He visited Argentina weeks ago to negotiate the new agreement with government authorities. The Fund recognizes the Swaziland Email List risks that the Milei policy package will not initially meet its objectives, which will require agile policy formulation, contingency plans and the need to further expand social assistance. The document says that the ruling party must form broader coalitions in Congress, “since the president's own party (La Libertad Avanza) has minorities in both the Lower House and the Senate.
In any case, they point out that in conversations with political advisors and members of various political parties, "They suggest that there is central support in Congress to achieve progress in key areas." IMF projections for Argentina According to the staff report, “Inflation will accelerate in the near term as relative price imbalances and other price controls are removed.” He estimates a surplus in the trade balance for this year “supported by a rebound in agricultural exports and further improvements in the energy balance.” According to the IMF, which projects adrop inonomy would begin to recover in late 2024, as initial headwinds dissipate and distortions are eliminated, although policies will need to continuding fiscal policy, it indicates that the authorities aim to achieve a primary surplus"consistent with general equilibrium, mainly through a combination of temporary (trade-related) taxes and efforts to reduce administrative costs, energy and transportation subsidies, discretionary transfers to provinces and state-owned companies, and infrastructure spending.