The International Monetary Fund (IMF) has predicted that Argentina's economy will contract by 1.3% in 2015, a figure smaller than original estimates, as the organization revised its world projections to reflect tumbling oil prices.
IMF technicians signaled that the fall in the price of the fuel would overall have a neutral effect on the Latin American region. Countries that are net importers of petroleum, such as Argentina, will benefit from the cheaper commodity, while exporting nations such as Venezuela will see a graver economic impact.
In Argentina's case, however, the falls raise questions over the viability of the Vaca Muerta project, given that low prices are seen to discourage investment in the non-conventional fuel source.
Overall, the IMF forecasts a year of mediocre growth for the region in 2015, marked by a dramatic predictions of a 7% drop in GDP for Venezuela and tepid figures for other countries, such as Brazil and Argentina, 0.3% and minus 1.3%.