The IMF has worsened the inflation forecast and the evolution of GDP for Argentina

The multilateral credit agency took note in a document released Monday in Washington after the fourth review of the Argentine economic program under the credit. to be listening for $ 57 billion.

The IMF attributed the sharpening drop in GDP to the continued fall in domestic demand and downward revisions to the growth of the country's main trading partners, particularly Brazil.

As for the trigger for inflation, the IMF blamed the rise in nominal wages and the significant rise in inflation expectations.

For the Fund, the capacity available to it The repayment of its debt by Argentina remains "adequate", although, he warned, it is subject to "more risk".

After the review the IMF has authorized the Central Bank to intervene further on the future dollar market. It will be able to sell up to $ 3,600 million in futures contracts, or $ 2,600 million more than the previous limit, thus easing the firepower of the monetary authority in the face of potential tensions on the foreign exchange market and without the need to sell currencies.

The IMF has also recognized that, with inflation not yielding, Real interest rates should remain high longerthus again affecting domestic demand.

The report also warns of "the risk of a prolonged change in portfolio preferences for Argentine badets due to growing uncertainties about the future political landscape".

This could, according to the IMF, lead to an increase in dollarization, which will put pressure on the exchange rate, with a significant impact on inflation, an increase in the debt-to-GDP ratio and a larger loss. foreign exchange reserves.