Three praises and four critics of the Monetary Fund for Government Economic Policy

– Deficit and activity: "The authorities' policies who support the agreement supported by the FMI bear fruit. High budget and current account deficits are decreasing. Economic activity has contracted in 2018, but some evidence indicates that the recession hit the bottomand a gradual recovery is expected in the coming quarters. "

In this way, the Fund concurred with the comments of the Minister of Finance, Nicolás Dujovne, which reiterated Wednesday that the activity had reached its lowest point, as economic activity had experienced intermediate growth over the past three months. In December and January, the economy grew by 1% and 0.6% respectively from the previous month, and the February data are expected to show the same trend, with the industry and construction sectors already experiencing increases of 2.4% and 8.3%, respectively.

– Monetary Policy: "The BCRA reacted to this situation (acceleration of inflation) by recalibrating its monetary policy, maintaining zero growth of the money base until the end of the year. A new central bank charter has been submitted to Congress which, if approved as law, will enhance the credibility of monetary policy. "

So, the IMF also approved the decision of the agency to exceed the target of the monetary base, which led to the reference rate of Leliq's rise.

– debt: "The Argentine government has shown its determination to ensure that the ratio of public debt to GDP is on a sustainable trajectory"L & # 39; s body He mentioned the decision to reduce the 2018 primary deficit below the target set by the program. Argentina ended last year with a primary red of $ 338 987 million, or 2.4% of GDP, but the target set with the agency was 2.7% of the product.

In turn, the The agency pointed out that the government had been able to "fully refinance the debt which will expire in the coming months "and that" the interest rate paid for this debt has decreased ".

– Inflation: "Inflation remains high. Inflationary expectations are rising and inflationary inertia is hard to break. "" The results in terms of inflation they disappointed"

Due to rising rates and inertia that does not yield, inflation will close the first quarter double-digitbetween January and February, prices rose by 6.8% and 4% are expected for March. Even in the latest survey of market expectations (REM) badysts have forecast the inflation of the 36% for the year.

– Less expenses and more income: "Given the lower than expected level of tax revenue in the first half of the year, it will be essential to act continually with caution in the execution of spending plans and Take other measures to increase tax revenue so that the fiscal situation of 2019 reaches the primary balance ".

With reference to "other measures", the Fund could refer to or apply more taxes, which the government is rejecting for the moment, reduce fraud or generate larger exports that increase revenues. From Treasury badured that "it is expected that higher than expected growth and higher inflation will imply revenue improvements"

– Vulnerable: "Protect the most vulnerable The impact of the recession and high inflation remains a key priority. The authorities have taken a series of measures to improve coverage of the social protection network and provide more resources to the poor. It will take continuous work fill the remaining gaps in the coverage of the social protection network and improve the effectiveness of social programs to fight against poverty"

In this regard, the IMF highlighted the government's efforts to maintain and even increase social badistance (AUH), but stressed the need to redouble efforts to ensure that programs help reduce poverty, which returned to 32% by the end of 2018.

– Reforms: "Supply reforms are essential for achieving strong, sustainable and equitable growth." Priorities include additional efforts to create a less disruptive tax system, promote increased competition in domestic product markets and remove barriers to international trade. foreign investment, strengthen governance, fight corruption and promote gender equity ".