MercoPress. South Atlantic News Agency

IMF extends Argentina a new deadline for CPI and GDP statistics

Managing Director Christine Lagarde recognized Argentina's ongoing work and intention to introduce a new national CPI in early 2014.

Directors of the International Monetary Fund (IMF) announced on Monday that they will give Argentine authorities an extended deadline in order to improve upon disputed national statistics, giving the nation until March 2014 to make the necessary changes.

 A report released by the global economic authority contained criticism for the statistics released by Argentina's state data authority INDEC. The IMF in a said Argentina “has not adopted the measures requested by the Fund to deal with inadequate Consumer Price Index and Gross Domestic Product figures”.

Nevertheless, the IMF board also praised “the work and attempt to introduce a new Consumer Price Index at the start of 2014,” as well as efforts to “alleviate deficiencies in GDP statistics.”

Referring to an “established timeframe,” the organization requested that Argentina prepare from March 2014, “an initial collections of specific measure, including the publication of a new CPI and revised estimates for GDP.”

Other measures which were not outlined in the statement “must be implemented at the end of September 2014 and the end of February 2015.”

The IMF board of directors analyzed the issue of Argentine statistics for an hour and a half, as well as the proposal delivered by Argentina to improve inflation and GDP data. Release follows:

”The International Monetary Fund’s Executive Board met today (Monday) to consider the Managing Director’s report on Argentina’s progress in implementing remedial measures to address the quality of the official data reported to the Fund for the Consumer Price Index for Greater Buenos Aires (CPI-GBA) and Gross Domestic Product (GDP).

“While noting that Argentina has not adopted the measures called for by the Fund to address the inaccurate provision of CPI-GBA and GDP data, the Executive Board recognized Argentina’s ongoing work and intention to introduce a new national CPI in early 2014. The Board also noted that Argentina is working to address the shortcomings in its GDP data.

”In light of these developments, the Executive Board adopted a decision calling on Argentina to implement specified actions to address the quality of its official CPI and GDP data according to a specified timetable. The decision calls on Argentina to implement an initial set of specified actions, including the public release of a new national CPI and revised GDP estimates, by end March 2014. Further actions must be implemented by end-September 2014 and end-February 2015.

“The Managing Director is required to report to the Executive Board by within 45 days of each of the aforementioned deadlines on the status of Argentina’s implementation of the specified actions. At each such time, the Executive Board will review this issue in line with IMF procedures.

”The Fund notes the importance of the ongoing discussions with the Argentine authorities to improve the quality of Argentina’s official CPI and GDP data and stands ready to continue this dialogue, and, more generally, to continue strengthening the relationship between Argentina and the Fund”.