After a strong rebound in the second half of 2021, GDP is expected to rise by 3.6% in 2022 and 1.9% in 2023. A recent agreement with external creditors will lower policy uncertainty and help to reduce long standing macroeconomic imbalances gradually. Annual inflation has risen to 58% and is largely related to domestic factors, as key domestic prices are delinked from global developments. In addition, currency controls, low international reserves and limited fiscal space keep risks elevated, which will weigh on investment in 2022 and 2023.
Improving conditions for businesses to thrive, compete and create quality jobs, while investing in skills of and opportunities for people should be high on the policy agenda. Economic hardship triggered by past macroeconomic crisis and by the pandemic has aggravated economic inequalities and highlighted the need for more effective social protection, including for vulnerable households whose livelihoods are outside the formal labour market.
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2021 Structural Reform Priorities
Significant reforms have been undertaken since 2015 to strengthen growth and well-being, as reported in the 2017 OECD Economic Survey of Argentina. Access to international capital markets was restored, the credibility of national statistics was re-established and social protection was enhanced while cutting back on ineffective spending. A tax reform, a new competition law, improvements in the sustainability of the pension system, new legal frameworks for capital markets and for public-private partnerships, the creation of a new independent fiscal council and a commitment to strengthen the independence of the Central Bank followed.