For the OECD, Argentina will emerge from the recession in 2020 thanks to exports

The Argentine economy will gradually come out of recession, with Positive quarterly growth rates again this year, thanks to the dynamism of exports, said Tuesday the OECD in its half-yearly report on the prospects of Argentina.

"Since domestic demand remains weak, Exports are expected to stimulate recovery and, throughout 2019, quarterly growth rates return to a positive level.. However, the decline in international trade flows could limit global demand for Argentine exports, "the report says.

According to the Organization for Economic Co-operation and Development (OECD), Argentina's GDP will decline by 1.8% in 2019, one-tenth less than what the international body had predicted in November of last year..

However, revised its forecasts for 2020. For this year, he estimated that the Argentine economy would have "suspended" the recession in order to grow the 2.1%, against 2.3% predicted six months ago.

For the agency based in Paris, there is several threats that still put recovery at riskmainly "restrictive macroeconomic policies and political uncertainty before the elections of October 2019 ".

In addition, in his report, he detailed the problems currently affecting Argentina, with particular emphasis on high levels of inflation that respond to the sharp devaluation of the currency.

To counteract its effects, welcomed the "ambitious" tax plan of President Mauricio Macri, which is expected to reach the budget balance this year and achieve a primary surplus of 1% of GDP in 2020, compared to the 2.4% primary fiscal deficit with which fiscal year 2018 ended.

In addition, OECD highlights Central Bank's efforts to pursue more restrictive monetary policy however, due to the recent acceleration of inflation, he stressed that additional structural reforms would be needed to improve productivity.

However, a "slowdown in international trade" could limit export growthThe OECD warned, however, that stronger domestic demand could offset and lead to GDP growth above 2% next year.

"It is necessary to continue structural reforms to improve productivity, boost exports and boost growth. Competition is still rare in many sectors due to national restrictions on entry, business barriers and import restrictions, said the OECD.

"The decline in consumer prices that would be achieved with closer domestic and foreign competition would improve the purchasing power of households, especially those with low incomes. Better access to intermediate inputs would increase the productivity and competitiveness of domestic producersallowing companies to create formal and better paid jobs, "he added.