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IMF growth forecasts biased: Argentine, Bolivian officials

Xinhua, October 9, 2015 Adjust font size:

The International Monetary Fund (IMF) has issued biased growth forecasts for Argentina and Bolivia, only in favor of countries that toe the Fund's line, Argentine and Bolivian senior officials said.

Argentine Economy Minister Axel Kicillof criticized the reports put out by the Washington-based fiscal policy-maker as "a disgrace". "They underrate the countries that don't apply the policies they recommend," Kicillof on Thursday told local radio station Nacional.

The IMF's "Regional Economic Outlook" for the Western Hemisphere, released Tuesday, forecast that Argentina's economy will see a 0.4-percent growth in 2015, but contract 0.7 percent in 2016.

According to the economy minister, "the IMF predicted last year that Argentina's economy would fall (in 2015) and this year it's saying that it's going to rise. They always get it wrong when it comes to Argentina and underrate countries that apply policies that differ from their proposals."

Kicillof added he was "surprised the IMF is forecasting such a poor economic performance, after the positive evolution the economy has shown in the first nine months of the year."

Some Argentine government officials have also dismissed the fiscal recommendations that accompanied the IMF report, which called on Argentina to make macroeconomic modifications, basically spending cuts, to reactivate the economy.

"They never hit the nail on the head regarding Argentina's economic situation," Chief of Staff Anibal Fernandez said Thursday. "Their predictions have been a phenomenal failure."

Bolivia also rejected the growth projections issued by the IMF and other international organizations, such as the Economic Commission for Latin America and the Caribbean (ECLAC), on the same grounds.

"I regret the mistaken forecast put out by ECLAC, which joins other international organizations that lower Bolivia's growth for this year," Bolivian Economy and Public Finance Minister Luis Arce told reporters on Wednesday.

Bolivia's central bank has predicted a 5-percent growth for 2015, while ECLAC reported a 4.4-percent growth and the IMF, 4.1-percent.

The same pattern appeared in 2014, when the country grew 5.4 percent, above the IMF and World Bank's projections of 5.2 percent.

"It's not the first time they're wrong," said Arce, adding "Bolivia will see a much higher growth than they are saying" in 2015. Endi