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Argentina’s economy will grow 2% with annual inflation of 60% in 2023, according to the budget project that the Government sent to the Congress of the trans-Andean nation, a source from the Ministry of Economy told the press.

In the midst of a delicate financial crisis, the southern country will grow 4% and will have an inflation rate of 94.5% this year, according to the source, who preferred that his identity not be revealed.

“The budget is realistic,” the source said.

The Minister of Economy, Sergio Massa, confirmed through a tweet that his portfolio sent the project to Congress for discussion at night.

“If there is no budget (because Parliament does not approve it), we would be in a shutdown situation,” he said, since the budget for the year 2022 was also not approved by a Congress where the forces of the center-left ruling party and the opposition they are balanced.

Public spending will rise 65% next year – when general elections are held in Argentina -, according to the source, so it will exceed the inflation guideline, while the country will have a trade surplus of 12.3 billion dollars.

Argentina will have a primary fiscal deficit equivalent to 1.9% of GDP and a financial one of 3.9%, according to the project revealed by the source.

The majority of Argentines surveyed at the beginning of the month said that the country’s economic situation will worsen in the coming months, according to a survey published by consulting firm Management & Fit.

According to the survey carried out between September 2 and 13, 63.7% of the participants maintained that the evolution of the economy will be worse, the highest level registered since at least October 2017, according to the survey data. The previous month those who responded in this way totaled 58.6%.

The third largest economy in Latin America is going through an economic and financial crisis, with a high level of poverty, a significant fiscal deficit and inflation that will end the year at 95%, according to the Government’s estimate in the 2023 budget project.

The economy will grow 4% this year, compared to 10.3% in 2021 while in 2023 it will slow to 2%, according to the project.

The main problems facing the country are inflation, rising tariffs and corruption, according to the majority of the survey responses.

The management of President Alberto Fernández was disapproved by 73.2% of those surveyed, also the highest level since at least October 2017, while 19.8% approved of his management, above the 18.4% that was shown in favor in the previous month’s survey.

Asked about the intention to vote for president if the elections were held now, 59.9% of those surveyed said they would vote for a candidate from the opposition to the Peronist government of Fernández, above the 55.8% who favored that option in the previous survey.

Meanwhile, 29.4% responded that they would vote for a ruling party candidate, slightly above the 29.3% who answered the same way in the July survey.

Although Argentines will go to the polls in 2023 to elect the president and part of Congress, the candidates have not yet been defined.

The M&F survey was conducted nationally by telephone among 2,200 participants ages 16 to 75 and has a margin of error of 2.1% and a confidence level of 95%.

The approval, which has to be ratified by the IMF’s executive council, would enable funds of 3.9 billion dollars for Argentina, which is trying to rebuild its reserves and bring down a very high rate of inflation.

Argentina, a leading world grain exporter, reached a new deal with the IMF this year to replace a failed 2018 program. The new program was critical for the country to meet IMF obligations.

The deal entails economic goals, including rebuilding depleted reserves and cutting a deep fiscal deficit to improve the country’s finances.

“Most of the quantitative goals of the program revised at the end of June 2022 were met, with the exception of the floor of net international reserves, mainly due to a growth in the volume of imports higher than programmed,” the IMF said in a statement.

“A subsequent period of volatility in the foreign exchange and bond markets has been tempered by decisive political decisions to correct previous setbacks and to rebuild credibility,” the agency detailed.

The IMF praised the steps taken by Argentine Economy Minister Sergio Massa, who took office in August after a period of instability that included the resignation of Martín Guzmán as head of the economy and the passage, for two weeks, of Silvina Batakis in the position.

Regarding Argentine reserves, which have proven difficult to rebuild, the IMF said they should grow by about 9.8 billion dollars in the 2022-23 period, in line with program goals. However, the global economic climate has weighed on growth and fueled inflation.

Despite this, within the framework of decisive actions by the new economic team, market pressures are dissipating, and the growth forecast remains stable at 4% for this year, before moderating to a potential rate of 2% for the 2023 and beyond,” the IMF added.

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Source: www.elmostrador.cl

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J. A. Allen

Author, blogger, freelance writer. Hater of spiders. Drinker of wine. Mother of hellions.

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