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IMF Sees Tepid Global Growth, Presses Latin America to Reform, Moves on Argentina Aid

The Fund warns of financing strains driven by high debt alongside fragile markets.

Overview

  • Kristalina Georgieva said decisions are expected soon on an Argentina support package being coordinated with the United States, the World Bank and the IDB.
  • One option under discussion is the United States lending its IMF Special Drawing Rights to Argentina, echoing a 2023 arrangement by Qatar.
  • Georgieva praised early reforms under President Javier Milei, calling reserve buildup the top priority and suggesting this could perhaps be Argentina’s last IMF program.
  • The IMF’s forthcoming annual report is set to project roughly 3% medium‑term global growth, with warnings that public debt could near 100% of world GDP by 2029.
  • IMF analysis credits stronger fiscal rules, more independent central banks and deeper local‑currency debt markets for lifting emerging‑market growth and lowering inflation, even as risks persist from potential investor reversals, AI‑linked valuation corrections, tariffs and rising gold demand.