Argentina: Selected Issues

November 10, 2016

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Format: Chicago

Argentina: Selected Issues, (USA: International Monetary Fund, 2016) accessed November 23, 2024

Summary

This paper discusses Argentina’s investment rate which was well below the average of Latin American countries and that of a peer group of advanced and emerging market countries, with a larger gap in private investment. Raising investment prospects would be essential to boost economic activity. The administration that took office in December 2015 has emphasized the importance of generating an investor friendly environment that allows Argentina to recover some of the growth opportunities lost over the last few decades. Although quantifying the capital accumulation gap is a clearly a difficult task, one way of doing so is to look at the difference between Argentina’s capital-labor ratio and that of the selected peer group of countries. Argentina’s investment rates and capital-output ratios are also compared with estimates of their steady state values derived from standard neoclassical growth models. Argentina’s investment rate would need to increase significantly to eliminate the capital accumulation gap built during the last two decades, and this could significantly accelerate GDP growth.

Subject: Expenditure, Exports, Financial statements, Inflation, Inflation targeting, Labor, Monetary policy, Pensions, Prices, Public financial management (PFM)

Keywords: Argentina, Balance sheet expansion, Caribbean, Cost reduction, CR, Eastern Europe, Exchange rate, Financial statements, GDP, Global, Indexation formula, Indexing benefit, Inflation, Inflation targeting, Investment rate, ISCR, Pensions

Publication Details

Pages:

145
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/347
Stock No:

1ARGEA2016008
ISBN:

9781475552645
ISSN:

1934-7685

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