Press Release No. 17/120

Statement by David Lipton, First Deputy Managing Director of the IMF, at the Conclusion of His Visit to Argentina

April 7, 2017

• IMF’s Lipton participates in Latin America economic forum in Buenos Aires
• Says region continues to faces challenges but growth is expected to be positive again this year
• Praises Argentina’s economic reforms, sees early signs of policy success

Mr. David Lipton, First Deputy Managing Director of the International Monetary Fund (IMF), visited Argentina during April 3-7, 2017, to participate in the 2017 World Economic Forum on Latin America. During his visit, Mr. Lipton had the opportunity to exchange views on the global and regional economy with Government Officials from Latin America, representatives of the private sector, and academics.

He issued the following statement at the conclusion of his visit to Buenos Aires:

“I was pleased to be in Argentina and engage in very extensive and insightful discussions with policy makers from Latin America and a wide array of representatives from different sectors of the economy in the region during the World Economic Forum on Latin America. We met at a time when the region continues to face a challenging environment characterized by slower external demand, the end of the commodity super cycle, and increased policy uncertainty in advanced countries.

“Nonetheless, regional growth is expected to be positive again this year after contracting in 2016 and is slated to continue to pick up gradually next year. Domestic factors, however, will continue to play a significant role in many economies. In this context, countries should continue their efforts to build resilience notably by pursuing and calibrating their fiscal adjustments as needed, and allowing exchange rates to fluctuate to buffer external shocks.

“Looking further ahead, in addition to keeping macro-economic stability, the region should pursue its efforts to improve competitiveness and growth and ensure that the benefits can be more broadly shared. Such reform agenda includes closing the infrastructure gap, reducing inequality and labor market informality, improving education outcomes and furthering regional economic integration.

“In Argentina, the authorities have embarked on a much needed and welcome set of reforms to eliminate pervasive distortions and imbalances in the economy. While these reforms can be challenging, and take some time to bear fruit, sustained effort would provide the basis for higher, more sustainable and inclusive growth. There are early signs of policy success. We expect the economy to rebound this year and next, and inflation to continue to decline.”