Argentina’s economy has become increasingly fragile, with series of marked volatility in the market more recently reflecting political uncertainties, the International Monetary Fund (IMF) said in a report.
The IMF reiterated that the historic drought resulted in larger-than-expected losses in fiscal revenues, agricultural production, and exports.
“But non-agricultural activity proved to be resilient, reflecting robust domestic demand,” the IMF said.
“Inflation and external pressures intensified, with reserves falling to dangerously low levels because of drought and insufficient policy adjustment,” the IMF added.
“Policy slippages reflected, in part, policy constraints and electoral considerations,” according to the IMF report.
