The Fund outlined four priorities for turning economic stabilisation into stronger growth and job creation as it backed a new $900 million disbursement.

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The International Monetary Fund (IMF) on Thursday urged Argentina to maintain its economic programme, warning that sustained policy implementation and stronger international reserves remain essential to reducing country risk as concerns grow over a possible technical recession.

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IMF spokeswoman Julie Kozack said the government should continue implementing its current policies while ensuring that the benefits of economic stabilisation translate into stronger growth and employment.

“Our best advice for Argentina to continue reducing its country risk is to continue with its strong policy implementation, that is, to keep implementing the programme as it has been doing,” Kozack told a news conference in Washington.

She stressed that accumulating net international reserves and strengthening the country’s external position were fundamental to reducing financial risks. The Fund’s broader message, she added, was to maintain the current policy direction while extending the benefits of stabilisation across the economy.

🇦🇷💸 | Ante las declaraciones directas del presidente de la nación Argentina, Javier Milei, la escalada de la crisis económica golpea con dureza a la sociedad, donde la mayoría de la población lucha diariamente contra el endeudamiento y la precariedad laboral. La realidad es que… pic.twitter.com/J4RLdc4uvQ

— teleSUR TV (@teleSURtv) October 22, 2026

Text Reads: | In light of the direct statements from Javier Milei, president of the Argentine nation, the escalation of the economic crisis is hitting society hard, where the majority of the population struggles daily against debt and job precariousness. The reality is that surveys reveal that nearly 6 out of 10 Argentine citizens have had to go into debt to survive amid the drastic drop in purchasing power. At the same time, the lack of employment and the loss of social rights worsen a landscape that deeply affects the quality of life of families, especially the youth. Popular discontent is growing in the face of official responses that seem to ignore the urgency of the crisis, forcing us to understand “The Other Side of the Coin”.

Addressing questions about the possibility of Argentina recording two consecutive quarters of economic contraction, Kozack outlined four priorities agreed upon with the government to support growth and job creation.

These include deepening capital and mortgage markets to expand access to financing, introducing greater flexibility in the labour market to encourage private-sector employment, advancing infrastructure projects awarded through concession agreements, and facilitating strategic investment through the Incentive Regime for Large Investments (RIGI).

Projects approved under the investment incentive scheme already exceed $76 billion, according to the IMF.

The Fund’s latest assessment comes as its staff and Argentine authorities reached an agreement on Tuesday on the third review of the country’s Extended Fund Facility programme, potentially unlocking a disbursement of approximately $900 million.

Kozack said the IMF Executive Board could consider the review in early December.

The Fund said the programme had continued to deliver results despite a more challenging international environment. Net international reserves exceeded the June target by approximately $4 billion, while the Central Bank purchased nearly $16 billion in foreign currency during the year.

The Treasury also raised more than $5 billion in domestic markets. With support from official creditors, the government secured $3.2 billion in guaranteed financing from international banks and was working to obtain an additional $1 billion before the end of the year.

The agreement maintains Argentina’s target of a primary fiscal surplus equivalent to 1.4% of gross domestic product (GDP) in 2026, with a similar fiscal effort planned for 2027. It also preserves the existing exchange rate band system.

However, the economic outlook remains weaker than previously expected. In October, the IMF lowered its 2026 growth forecast for Argentina from 3.5% to 2.1%, underscoring the challenge of turning stabilisation gains into sustained economic expansion.

It’s not impossible to spot the characteristics of a brewing financial crisis. We can look to 2008 for clues.

© Illustration by Andrei Cojocaru; photos by Getty Images

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