The International Monetary Fund (IMF) raised its growth forecast for Argentina in 2017 to 2.5%, up from its prediction of 2.3% in April. However, the organization also upped its forecast for inflation at the year’s end to 22.3%.
These numbers were presented in Washington this week as part of the IMF’s World Economic Outlook (WEO), its biannual report that describes the current state of the world economy, and includes projections for the near future.
The IMF indicates that Argentina’s economy will continue growing as real wages – meaning that not only the amount of money people make goes up, but also the amount of goods and services they can purchase – increase consumption, public works boost investments, and exports grow as well.
The Argentine Central Bank’s goal to keep the inflation rate below 17% will evidently not be accomplished, with the government already having admitted it. The IMF, on its end, predicts that it will clock in at 22.3%, and will sink to 16.7% in 2018.
The latest predictions by the Central Bank, made in September, are not far off from the IMF’s, as they project market growth at 2.8%, and inflation at 22%.