The International Monetary Fund maintains its forecast for Argentina’s economic downturn but praises the nation’s financial reforms. Despite a 3.5% economic contraction predicted for 2024, there is hope for a 5% recovery in 2025. September’s inflation rate hit a low of 3.47%, marking progress since November 2021.
The IMF Chief Economist highlighted the significant drop in inflation from 25% in December 2023 to the current 209%, with projections aiming for a decrease to 62.7% by 2025. Argentina, the IMF’s largest debtor with approximately $43 billion in obligations, has seen positive fiscal adjustments and anchored policies.
Under President Milei’s administration, strict economic measures have been implemented since December 2023. The government will consider new financial assistance after reviewing the current program. IMF emphasizes the importance of sustained monetary policies and supply-side reforms for economic recovery and stability.
Despite challenges, the IMF sees increased market confidence in Argentina and stresses the necessity of maintaining current policies for sustainable growth. The goal is to support long-term economic stability and development in the country.