The International Monetary Fund (IMF) revised its economic growth projections for the world and, as it does every three months, gave his reasons. With magnifier in Latin America, the body chaired by Christine Lagarde worsened its forecast for Argentina: the economy will fall by 1% in 2016, three tenths more than it had projected in October
In this way. The IMF confirmed that the country will fall into recession in the first year of government of Mauricio Macri, since this scenario was expected last quarter, when it had published that would drop 0.07 percent. The new forecast was learned through the report “World Economic Outlook” at a press conference in Washington.
Alejandro Werner , Director of the Western Hemisphere of the Fund, said the country began a “major shift” in the way of correcting distortions in economic policy in recent years. In a written report, he is adding that the new approach “has improved growth prospects for the medium term, but is likely to setting generates a mild recession in 2016 “.
IMF. “The new government began a major transition to correct macroeconomic imbalances” also highlighted the measures implemented to raise the FX market, the elimination of restrictions on international trade, and the “announcement of the main guidelines of the macroeconomic framework and the partial removal of subsidies to energy “, which will be announced next week.
Differences with the government
The number of growth of Gross Domestic Product (GDP) exposed the differences with the projection of the Minister of Treasury and Finance, Alfonso Prat -Gay , who said that the economy will end the year with an adjustment of 0.5% to 1%, because a surge will be generated towards the last quarter of 2016.
In Closing his visit to the Davos Forum, Macri referred to the revisions made by the IMF to member countries, and specifically said the next steps with respect to the Article IV of the Convention . “We have nothing to hide without thereby losing independence,” he said. This article provides for the supervision by the agency, the “international monetary system to ensure its smooth operation, and monitor the compliance of each member country with its obligations”.
The Argentina is not alone country of the region, according to the IMF, will end the year with fall. Brazil’s economy would decline by 3.5%, and is not good news for the country, since trade relations would be harmed. The worst decline in GDP, however, is forecasted to Venezuela, down from 8 percent in 2016. Ecuador entered negative territory with regard to the latest projections of slight rise in October.
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