IMF considers ‘impressive’ progress in Argentina’s economy with Milei government

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A spokesperson for the international organization stated, however, that ‘the path to stabilization is never easy’. President Javier Milei speaks at the opening of the Argentine Congress, March 1, 2024. Reuters/Agustin Marcarian The progress made by the government of Argentina’s ultra-liberal president, Javier Milei, is “impressive”, but “the path to stabilization is never easy “, declared this Thursday (4) a spokeswoman for the International Monetary Fund (IMF). The financial body has supported Milei since he took office in December, with the aim of reaching a zero deficit by 2024, even if this includes a “chainsaw” plan to cut spending. “The progress to date has been impressive,” said Julie Kozack, the Fund’s communications director. READ ALSO: Accounts in the black and poverty: both sides of Milei’s radical adjustment Argentina has 2nd monthly surplus, but suffers from poverty and inflation IMF recommends Milei protect Argentina’s poorest sectors “January and February recorded a fiscal surplus for the first time in more than a decade, international reserves are being reconstituted, inflation is falling faster than expected and market indicators, such as exchange rate variation and the sovereign spread, continue to improve”, he said. The sovereign spread is the cost of a country’s external debt. Argentine authorities are implementing “an ambitious macroeconomic stabilization plan” centered on a “strong fiscal anchor” that eliminates any government financing from the Central Bank, and on policies aimed at reducing inflation and rebuilding reserves, Kozack explained at a conference press in Washington. But “the path to stabilization [econômica] it is never easy and requires strong policy implementation”, added the spokesperson. Milei’s first 100 days in Argentina For the IMF it is important to “maintain improvements in the quality of fiscal adjustment” and adapt monetary policy during the “transition” In a country with more than 12 million poor people (41.7% of the population), the financial organization applauds “the authorities’ recent efforts to strengthen social assistance in the flagship child subsidy program, while also protecting the real value of pensions”. The reforms need “social and political support” to “guarantee durability and effectiveness”, said the spokeswoman, while public sector unions protest in the streets against the dismissal of almost 15 thousand employees. Milei reactivated a program of credit of US$44 billion (R$220 billion) with the IMF, about which it maintains “active discussions”, according to Kozack, who denied that a new plan is being negotiated. “At this point, it would be premature to discuss the modalities of a possible future program”, he declared.

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