Back

LatinNews Regional Monitor: Brazil & Southern Cone - 24 July 2018

In brief: Argentina

Argentina: The International Monetary Fund (IMF) has revised down its growth projections for Argentina in 2018 from the 2% forecast in April to just 0.4% with the economy predicted to contract in the second and third quarters of 2018. The IMF attributed the downturn after a “solid start to the year” partly to the drought, which has reduced agricultural yields, but principally to the depreciation of the Argentine peso in May and June which lead to inflation and decreased investor confidence. Nonetheless, the IMF expects a gradual recovery in 2019 and 2020 supported by increased investor confidence due to the IMF stabilisation programme and a lower cost of capital, decreased inflation, and strong demand for Argentina’s exported goods. The stabilisation programme, agreed in June, will grant Argentina a US$50bn IMF credit line, the largest in the fund’s history, and is conditional on government commitments such as cutting spending. 

End of preview - This article contains approximately 150 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

LatinNews
Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
Contact
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.