IMF chief specifically excluded Argentina from its coming Latinamerican tour because the government of President Cristina Fernandez still has to comply with what was agreed last July, basically normalizing the controversial INDEC stats office and open its books to auditing as happens with all other members of the G20.
Latin American policy makers must be prepared to use interest rate cuts and consider fiscal measures to protect their economies in the event that the global economy stalls, the International Monetary Fund said.
Argentine Economy Minister Amado Boudou urged countries in the region to “seize the opportunity created as a result of the crisis affecting developed nations and implement their own solutions.”
Nicolas Eyzaguirre, the IMF director for Latin America, stated that Argentina must apply “major measures” to improve its method of measuring the inflation.
The head of the IMF for the Western Hemisphere Department Nicolás Eyzaguirre discards an outflow of capitals from Latin America as a consequence of the current global situation and pointed out that the region’s position is solid.
The head of the IMF Western Hemisphere Department Nicolas Eyzaguirre described the Argentine economy as “a frying pan with boiling oil”, in direct reference to a possible overheating as was recently warned by The Economist.
Latin America's economic boom could end in a full-blown crisis unless the region's governments properly manage the situation, the International Monetary Fund's top regional official said in an unusually stark warning to both policymakers and investors.
Economic growth in much of Latin America remains strong, propelled by rising commodity prices, easy financing conditions, and stimulative policies. Growth exceeded 6% in 2010, and while it is projected to moderate to about 4¾% in 2011, the IMF says countries should remove the policy stimulus on a timely basis.
IMF Western Hemisphere Director Nicolás Eyzaguirre said the organization had not yet received any official communication from the Argentine government regarding IMF recommendations over its inflation index.
International Monetary Fund (IMF) staff arrived Monday at Argentina’s Statistics Bureau, Indec headquarters in Buenos Aires to meet with its chief Ana María Edwin and its Director Norberto Itzcovich and begin the elaboration of a new cost of living index.