Econviews Logo

March 30, 2021

The Week at a Glance

Argentina: Another Episode in The IMF Soap Opera

BY Miguel A. Kiguel, Alejandro Giacoia, Andrés Borenstein, Isaías Marini, Lorena Giorgio, Rafael Aguilar

Share on twitter
Share on whatsapp
Share on facebook
Share on linkedin
Share on email
Share on reddit

Listen to our reports with a personalized podcasts through your Amazon Alexa or Apple devices audio translated into several languages

Editorial: Another Episode in The IMF Soap Opera

The International Monetary Fund’s soap opera with Argentina seems to have a lot of rating. The producers told the writers to keep adding characters and plots. It seems that there is no chance that it will end before December. The last chapter was filmed in Buenos Aires and Washington, in a production effort.


Fiscal Relief Comes From Outside, but Pressures Persist

In February, the first primary deficit of the year was registered, and on early March the Treasury needed financing from the Central Bank to face some payments. Despite the local debt market being on the government’s side in this first quarter, electoral spending has not yet taken off, and the consequences of a second wave of Covid-19 infections could add pressure to fiscal accounts in the coming months. The agreement with the IMF is delayed and it is practically ruled out that it will arrive before the October elections, so the process of fiscal consolidation will continue without a predictable roadmap.


Double Digit Unemployment Is Here to Stay

The unemployment rate closed the year at 11%, a rise of 2.1 points compared to the end of 2019. This figure is somewhat better than expected, but leaves no reason to celebrate since it hides more than it shows. Furthermore, the expectation is that it will be some time before Argentina can return to a single-digit unemployment rate


Econviews Weekly March 29th 2021

Argentina: Orderly or Messy Adjustment?

When the legislative elections of November 14 pass, all eyes will return almost exclusively to the economy. Once the results are digested, the question will be how Argentina will resolve the many imbalances that are

Read More »

Argentina: Open for Business

“High-Beta” is one of the most used analogies to describe the Argentine economy. There is a mathematical reason for that. Argentina is not the economy with the worst performance in a medium-term perspective compared to

Read More »

Argentina: Waiting for the budget

On September 15, 3 days after the primary elections, Congress will receive from Martín Guzmán the budget bill for 2022. Although the budget has not traditionally had the importance in Argentina that it usually has

Read More »