The World Bank (BM) predicted, in its latest report, that Argentina will have an increase of 5.5% in its internal gross product (GDP). As estimated by the entity, growth will be driven by “macroeconomic standardization.”
According to the agency’s latest report, the figure increased 1.3 percentage points (PP), since in October last year they had predicted a growth of 4.2%.
The Argentine economy will be the one that will grow the most in the region, according to the World Bank
The growth of Argentina will support the external sector, since internal consumption continues “lagged” for the loss of purchasing power and caution of the labor market.
PBI growth prospects in the region, according to the World Bank
On the other hand, Argentina will be the Latin American country with the fastest forecast growth.
The main problem is inflationsince it complicates the margin of monetary maneuver in the region. In turn, the growing commercial barriers threaten the industries relocation project and restrict access to global markets.
“The region faces winds against significant and needs to promote bold reforms to increase productivity, Improving infrastructure and creating quality jobs, “said Carlos Felipe Jaramillo, vice president of the BM for Latin America and the Caribbean.
“While the projections for Colombia (from 2.1% to 2.4%) and Peru (from 2.6% to 2.9%)there were cuts in estimates for Mexico (which would grow 1.5% to be stagnant at 0%) and for Chile (from 2.5% to 2.1%) “he added.
The growth estimate by the World Bank coincides with that of the International Monetary Fund (IMF), which said it will remain despite the global crisis.
The IMF maintained the growth projection for Argentina, despite the global crisis
He International Monetary Fund (IMF) ratified its prognosis of 5.5% growth for Argentina in 2025based on the good data observed in the first months of the year.
“We still have that forecast basically because of the positive data we saw. Despite the fiscal adjustment there was an increase in trust and that allows us to sustain the prognosis,” said Petya Koeva Brooks, a member of the body of chiefs of economy of the IMF.
However, he warned that the risks for this expansion to be completed have increased due to the risk of greater “financial restrictions” from the current global situation and for the “prices effects.”
The body of IMF chief economists offered a press conference on Tuesday within the framework of the annual spring assembly of the agency. Warned that The global economy will face significant slowdown in 2025 Following the hardening of commercial policies of the United States.
The press conference focused on the global situation, which underwent a strong change of course after the tariff measures imposed by Donald Trump.
In this context, the agency assured that the uncertainty generated by the Donald Trump’s tariff policy will cause a slowdown of the world economy and urged a stabilization to avoid a greater impact. The body adjusted to 2.8% the potential global growth.
According to the Global Economic Perspectives Report (Weo, in English), the new tariff measures imposed by Washington and the countermeasures implemented by its commercial partners constitute a relevant negative shock for world economic growth, especially for emerging and developing countries, including Latin America.
“All countries will be affected down due to the uncertainty that cuts investments and production“Pierre Olivier Gourinchas said.
Within that framework, he pointed out that some emerging economies could benefit from a new ordering of international trade.
As objectives to redirect the economy, the IMF instructed to “restore the stability of commercial relations” because “the world economy needs predictability.”
