Werner, IMF: It is likely that we expect inflation to exceed 20% this year

Although he has maintained his estimate of a decline in GDP for this year 1.7%, was optimistic that in the second quarter of this year, "the economy will start to grow".

In the organization's latest report, it was estimated that inflation in Argentina would be about 20%. When asked if he had these forecasts, Werner said that this opportunity was not generally re-examined by countries' inflation estimates, but admitted that "The review will be conducted at the end of the technical mission visit, which will visit Argentina in mid-February."

The head of the Fund estimated that in 2019, inflation would drop sharply. "Inflation forecasts will decline slowly as they stand at around 27% to 28% by 2019, but a decline in inflation from a rate close to 50% to one. rate of 27% or 28%, I do not think it's a slow fall "said Werner.

"The probability is that we are revising our inflation forecast for this year up 20%." Mainly because the closing of 2018 was much higher than expected, "said Cordoba's economist, a Mexican nationalized. Werner has not stopped pointing out "the monetary policy so consistent that it has been implemented and the stability of the exchange rate that we see " Currently.

He also pointed out that "as a result of a policy of zero growth of the monetary base, the policy areas of intervention and non-intervention that the BCRA has on the market of exchange, great predictability has been given to monetary policy ".

Werner also acknowledged that there was "a stability at undesirable levels of very high interest rates" and pointed out "Stability" in the exchange rate. "We hope that, thanks to this stability, interest rates will continue to fall"he said.

On the other hand, he insisted that "what we have seen since October tells us that the stated objectives were very well implemented and allowed the creation of a stable financial markets" .

Of course, he could not deny that "it was desirable that inflation had not been so high in 2018", then insist that "You have to focus on the change of trend."

2019 Elections

With regard to the electoral process and before he wondered whether he feared that the electoral process would affect compliance with tax obligations, Werner strongly insisted on the commitment of the current authorities. "No The authorities have clearly committed themselves to the strictest budgetary objectives, and they firmly believe that in the international financial environment this is like the anchoring of the economic agenda and that therefore, the authorities fill it. "he has answered.

Although it has not failed to emphasize that "we observe the effect of political uncertainty on the prospects of the Argentine economy, what will be the political framework that will govern to from 2020 "because" for the resumption of investment in Argentina is important to know what will be done in 2019 but in the next four years, "he said.

For the IMF, a change in the direction of economic policy "has always represented a considerable risk," acknowledged Werner, although he said he was confident that beyond the political leadership of the IMF, # 39; agency. "We are seeing a significant commitment in Argentine society."