The First Deputy Managing Director of the International Monetary Fund, Gita Gopinath, concluded her visit to Buenos Aires yesterday, after meeting with President Javier Milei and the economic team. In a statement before embarking on your trip to Brazil you said “My first visit to Buenos Aires was excellent. In recent days I have been able to learn more about the progress that is being made, but also the difficulties that the Argentine people face. I heard firsthand ideas from a wide range of actors on how to address the country’s challenges and harness its enormous potential.“.
During his 48-hour stay in Buenos Aires, Gopinath also met economists from the private sector, the CGT and civil organisations. Argentina and the IMF are under the aegis of an extensive facilities program that had “gone off the rails” by the end of 2023 and which the current government is now trying to get back on track.
“The first measures are starting to bear fruit, even if the road ahead remains difficult”Gopinath said. “A coherent and well-communicated monetary and exchange rate policy will be needed to continue to reduce inflation on a sustained basis, rebuild reserves and strengthen credibility.”
Gopinath was in Buenos Aires accompanied by the technical staff who followed the Argentine case Luis Cubeddu, Ashvin Ahuja and Ben Kelmanson. They heard from various personalities the main concerns about the prospects of the Argentine economy and the social and political fronts. Wages and incomes took a hit in December. And in January the government failed to pass the Omnibus bill in Congress or implement the DNU reforms.
The IMF has taken note of both sides and Gopinath has commented on this in his statement.
On the social front he stated that “given the short-term stabilization costs, it is essential that sustained efforts are made to support the vulnerable segments of the population and preserve the real value of social assistance and pensions, as well as ensuring that the burden of adjustment does not fall disproportionately on working families.
Regarding the government’s political strategy, the International Monetary Fund called for “Work pragmatic to gain social and political support “It is also essential to ensure the durability and effectiveness of the reforms.”
Source: Clarin
