Press Release No. 20/312

IMF Staff Statement on Argentina

October 12, 2020

Washington, DC: An IMF team, led by Julie Kozack Deputy Director of the Western Hemisphere Department and Luis Cubeddu Mission chief for Argentina, visited Buenos Aires from October 6 to 11, 2020 to learn and assess more about the Argentine authorities’ economic plans and policies. At the conclusion of the staff visit, Ms. Kozack and Mr. Cubeddu issued the following statement:

“IMF staff had productive meetings with the Argentine authorities,^[1] as well as representatives of congress, the private sector, trade unions and civil society to discuss the multifaceted challenges facing the country and exchange views on how best to address them.

“Argentina is facing complex economic and social difficulties, in the context of an unprecedented health crisis. The deep recession has led to an increase in already-high poverty and unemployment levels, the effects of which are being exacerbated by significant pressures in the FX market. These are exceptionally difficult challenges with no easy solutions. A comprehensive set of policies could underpin a restoration of confidence, but will need to be very carefully calibrated to promote the recovery and secure macro-economic stability.

“Staff gained a deeper understanding of the authorities’ policy plans to stabilize the economy and put it on a more sustainable and inclusive growth path. Staff welcomed the authorities’ commitment to policies to secure a growth-friendly fiscal consolidation while also protecting the most vulnerable, enabling a gradual reduction in inflation, and boosting job creation, investment and exports.

“IMF staff will continue to engage closely with the authorities. Staff plans to return to Buenos Aires in mid-November to initiate discussions on a new IMF-supported program.”