The IMF admitted to underestimating inflation and the economic crisis in Argentina

The International Monetary Fund (IMF) acknowledged that it underestimated "incredibly complicated situation" of the Argentine economy and also admitted that controlling inflation "was taking much longer" than originally planned. This has been reviewed by the Executive Director of the Fund, Christine Lagardewhen the first year of the largest agreement in the Fund's history, totaling US $ 57,000 million, is about to be completed in two weeks.

In addition, Lagarde was "reasonable and, hopefully, positive" on the evolution of economic activity in the country, despite the stagnation of the productive apparatus and the fall in consumption.

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Lagarde spoke Wednesday in Washington of the world situation at the Institute of American Business and answered a question about Argentina. He then insisted that the implementation of the program agreed with the government of Mauricio Macri "will end up being a successful plan".

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The official also acknowledged that the agency and the government had underestimated the severity of the crisis, and that they were too optimistic about the forecasts to contain the price hike.

Referring to the country, he said: "It's an incredibly complicated economic situation that many players, including ourselves, have underestimated a bit when we started trying to arm a program with the Argentine authorities ".
Speaking of inflation, Lagarde warned that "instead of stabilizing and gradually decreasing as we had planned, it shows a resistance much higher than we thought."

"Now, it's starting to go down, but it's taking longer than expected," the IMF director repeated, referring to the continued rise in prices.