The International Monetary Fund praised the Milei administration’s past and future austerity measures but warned that the path to stability will be ‘challenging’ in its latest Argentina staff report, which was published Thursday. The new schedule consists of the US$4.7 billion made in January plus US$800 million on May 10, US$532 million on August 10, and US$550 million on November 10. Calling the public sector “oversized,” the Fund welcomed the elimination of ministries and cuts in transfers to provinces. However, it warned that the government should tighten its monetary policy stance to support money demand and disinflation. However, it added, economic activity and consumption were nonetheless robust in the penultimate quarter of 2023, with record-low unemployment.

Source: Bueno Aires Herald February 03, 2024 00:13 UTC