April 5, 2019
1. Government requests economic review waiver from IMF
The Argentine government met with IMF officials this week with the goal of completing monthly reviews and finalizing the specifics of the IMF’s USD $10.8 billion disbursement. Nevertheless, Argentina asked for a waiver from the IMF to give the country time to provide the necessary March data, due to the IMF’s delay in reviewing the country’s financial details. Originally, the review was set to occur in March, but was put on hold until this month to include the latest official figures for the analysis. The IMF has stated that Argentina remains on a steady trajectory to comply with its financial goals to receive what will be its fourth loan of the largest payment ever made by the multilateral entity. Both the IMF and the WTO forecast continued economic troubles for Argentina through 2019.
2. Macri administration will meet with political allies in anticipation of elections
The government will meet with its political allies from the Unión Cívica Radical (UCR) next Monday to discuss calls for greater participation in decision-making with the intention of preventing the coalition from fracturing. It is likely that the UCR will participate in Macri’s vice-presidential pick.
3. Industrial Production increase 2.4% in February
Argentina’s statistical agency announced that Industrial Production Index increased 2.4% in February. The agency releases a monthly report tracking total industrial output, among other figures. According to the body, “the indicator compiles surveys relating to production and adds results from the industrial sector that are not included in the surveys, in line with the national government’s account classifications.
However, it presents an interannual fall of 8.5%.
4. Finance Minister assures that the economy is under control
Finance Minister Nicolás Dujovne stated that the worst part of the economic crisis has passed. On the same token, Dujovne noted that “high interest rates will remain as long as there is high inflation,” and detailed that they will be reduced once inflation drops. Dujovne also opined on the upcoming elections and presented Argentines a choice: “Kirchnerism or Cambiemos (the incumbent government coalition).” He connected the opposition with the crisis in Venezuela, adding that people are fleeing due to hunger.
Ámbito Financiero: Dujovne: “Lo peor de la crisis ya pasó”
5. Labor unions protest the national government
This Thursday, the General Confederation of Labor (CGT), accompanied by several smaller labor unions, protested the Argentine government. Thursday’s protests served as a warning for the Macri administration now that CGT leaders are threatening a general strike – which would be its fifth during Macri’s presidency. Social movements also put forth their grievances, bringing attention to the country’s food emergency.