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ECONOMY | 30-05-2018 13:20

OECD forecasts 2% growth for Argentina

The OECD warns of a “drop in confidence and capital flight”, as a decision draws near about Argentina’s inclusion in the organisation as a member state.

The Organisation for Economic Co-operation and Development (OECD) forecasts a growth rate for Argentina of two percent this year, while warning of a “drop in confidence and capital flight”.

Argentina recently experienced — in the words of President Mauricio Macri — economic “turbulence,” as the peso plummeted to historic lows against the dollar. The national currency devalued 22 percent against the dollar in May alone, bringing the yearly total to 34.6 percent and with no ceiling insight.

The OECD’s opinion was made known in Paris on Wednesday where an annual meeting is taking place. Among the agenda items is a final decision about Argentina’s inclusion in the OECD.

Argentina’s Treasury Minister Nicolás Dujovne and the Foreign Minister Jorge Faurie travelled to France on Wednesday. The country has already secured the support of the United States, France, the United Kingdom, Japan and Germany.

The OECD’s growth rate forecast comes as Argentina negotiates a line of credit with the International Monetary Fund (IMF). 

In April, the organisation led by Christine Lagarde lowered its earlier predictions for annual economic growth of two percent to 2.5 percent, and warned that the country must deepen spending cuts if it is to lower the budget deficit.

-TIMES

* This article was edited on Wednesday, May 30, 2018, to clarify the reference to the United Kingdom, correct the job title of Mr. Dujovne and the spelling of surname Lagarde. A sentence referring to the number of years full incorporation to the OECD would take was also removed.

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