Ex Economy Minister and current Vice-President Amado Boudou meets IMF»s chief Christine Lagarde at the 2011 Council of Americas
IMF has said Argentina’s economy is to grow by 2.8 % this year, exceeding estimations by private-sector analysts but below the 4 per cent average set by the country’s forecasted budget. IMF’s 2014 projections for the South American country reach 3.5 %; renewed inflation and trade restrictions’ claims.
In its periodic World Economic Outlook, the international credit organism points out that GDP in Latin America and the Caribbean grew by 3 per cent in comparison to the 4.5 growth rates of 2011 following a decreasing foreign demand and the impact of countries’ domestic trouble.
Deceleration has hit Brazil the most thus negatively impacting on neighboring countries. The group led by Chirstine Lagargde, however, insists that foreign causes also affected South America’s economic giant and Argentina’s main trade partner.
Argentina’s “extended imports and foreign exchange controls also affected trust in the development of business and investment activity” in the Brazilian market, the report describes.
Regarding inflation, the IMF estimates rates to reach 9.8 matching the government’s official statistics. The organisms, however, recalled that a motion of censure has been issued against Buenos Aires over its alleged failure to provide accurate data on inflation and GDP. “Figures are based on official data of Argentina but the organism has issued a declaration of censure and called Argentina to adopt corrective measures that secure the quality of official GDP and Prices Index data,” it says and warns the IMF is turning to “alternative” figures to address Argentina’s macroeconomic scenario.
Earlier this year, Argentina became the first country to be censored by the IMF facing expulsion risks and leading the administration of President Cristina Fernández de Kirchner to push on the implementation of the new Prices Index to be launched in September when Argentina’s requested progresses will be addressed again by the organisms’ board.
buenosairesherald.com