Argentina

The first review under the SBA is taking place in the context of turbulent market conditions, a stronger-than expected decline in activity, and an inability of the central bank to anchor inflation expectations. Data released since program approval has shown activity slowing markedly and inflation and inflation expectations rising (largely driven by a weakening currency). At the same time, a new bout of volatility in key emerging markets, together with a domestic corruption investigation, has limited Argentina’s access to market financing.