The International Monetary Fund, IMF, admitted on Wednesday that it had underestimated the “incredibly complicated situation” of the Argentine economy and also that taming inflation had taken much longer than originally expected.
Speaking at the American Enterprise Institute in Washington, the executive director of IMF, Christina Lagarde said that nevertheless she remained hopefully and reasonably positive about the evolution of economic activity in Argentina, despite the production recession and drastic drop in consumer spending.
Ms. Lagarde also insisted that the implementation of the program agreed with the administration of president Mauricio Macri will end being a successful plan.
Argentina in two weeks time will be facing the first anniversary of the signing of the controversial credit support agreement with the IMF, nominally the highest in the history of the Fund, some US$ 57 billion.
The Argentine economic situation has proved to be incredibly complicated and I dare say that many of those involved, including us, underestimated a bit, when we started with the Argentine authorities building the program
As to inflation, Ms. Lagarde warned that instead of stabilizing and diminishing gradually as we had anticipated, it is showing more resistance than what we thought. Now it is beginning to decline, but at a much slower pace than we had anticipated, admitted the IMF chief.