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OECD upgrades Argentina's 2022 growth forecast to 3.6 pct

ANI | Updated: Jun 09, 2022 06:28 IST

Buenos Aires [Argentina], June 9 (ANI/Xinhua): The Organization for Economic Cooperation and Development (OECD) on Wednesday upgraded its economic growth forecast for Argentina in 2022 to 3.6 per cent, or 1.1 percentage points higher than its previous December forecast.

In its "OECD Economic Outlook" report, the organization highlighted the agreements Argentina's government reached with different external creditors as a factor that "will reduce uncertainty and help gradually reduce long-standing macroeconomic imbalances."

For 2023, the OECD forecast Argentina's gross domestic product (GDP) will expand 1.9 per cent, well below the 3 per cent growth projected in April by the International Monetary Fund (IMF).

The organization also forecast inflation of nearly 58 per cent by the end of 2022 in Argentina, much higher than the 44.4 per cent annual inflation it estimated in December.

The report pointed to domestic factors as causes of inflation, such as "unanchored inflation expectations" because "domestic prices (such as energy prices) are decoupled from global trends."

Among the risk factors for the Argentine economy, the OECD included "currency controls, low international reserves and a limited fiscal margin," all of which may affect investment during the current year, as well as in 2023. (ANI/Xinhua)