The economic activity has proven to be resilient, with stable global growth and inflation continuing to moderate, according to the final statement of the meeting in Washington DC. Amid the discussions, it was revealed that Argentina's country risk had breached 1000 points for the first time since August 2019. The Argentine economic team indicated that this decrease is a result of the work done since December.
During the annual meeting of the International Monetary Fund (IMF) and the World Bank, it was emphasized that the constant messages to investors aim to pave the way for a return to the international debt markets and attract investment and foreign currency to strengthen the real economy. In this context, doubts persist regarding the political and social backing of the economic plan and the effective improvement of living conditions for Argentines, particularly given the high poverty rate of 52.9%.
On the last working day, the Argentine economic team participated in a meeting where the global scenario was analyzed. Alongside Finance Secretary Pablo Quirno and the representative to the IMF Leonard Madcur, Luis Caputo's presence in the International Monetary and Financial Committee (IMFC) was highlighted, conveying optimism.
Regarding the future, the Vice President of the Central Bank of the Argentine Republic, Vladimir Werning, detailed in a meeting in Washington DC the path towards exiting the capital controls and returning to the market. The progress of the Repo with banks for 2700 million dollars and improvements in market expectations were mentioned. Although there are still no clear definitions on maintaining the current program with the IMF or agreeing to a new one, fresh funds are expected to be added to expedite the lifting of the capital controls, without rush according to officials.
Despite the country risk reaching 1500 points, it is stated that a level of around 800 would be more "normal" for Argentina. In this context, the Government seeks to generate "credibility" amid negotiations and economic expectations.
