Sign In with Google
Sign In with Facebook
IMF's New Economic Forecast for Argentina
The International Monetary Fund (IMF) has lowered its forecast for Argentina's economic growth in 2024, predicting a contraction of 2.8% instead of an expansion of the same magnitude. This was a part of the World Economic Outlook update by the fund on Tuesday, which presented an overall softened outlook for Latin America's economic output.
Latin American Economic Projections
Based on the IMF forecast, the Latin America and Caribbean region will witness a GDP growth of 1.9% this year, reflecting a decrease of 0.4 percentage points from the October estimate. Even so, the IMF is optimistic about economic output in both Brazil and Mexico, the region's biggest economies, predicting slightly increased growth compared to three months ago.
"The revision in the forecast for 2024 in the Latin American and Caribbean region indicates a negative growth in Argentina. This change occurs in the context of major policy reforms to regain macroeconomic stability," the fund disclosed in its statement.
Policy Shifts in Argentina
However, Argentina's recently elected government deferred crucial spending reforms in a comprehensive Congress bill to expedite its passage, underscoring a commitment to eradicate the budget deficit notwithstanding.
The 5.6 percentage point fall in Argentina's growth forecast is the utmost among the revisions in the IMF’s new outlook.
Economic Growth Projections for Brazil and Mexico
On a brighter note, Brazil's economy is pegged to grow by 1.7% this year, a modest 0.2 percentage point increase from the prediction three months prior. As for Mexico, the IMF expects a 2.7% increase, rising by 0.6 percentage points from the October estimate.
Furthermore, the general growth in emerging market economies and developing economies looks promising at 4.1% in 2024, increasing from a 4.0% estimate late last year.
