Argentina will grow 5.8% according to the estimates of the International Monetary Fund (IMF) in its World Economic Outlook (WEO) report, improving its previous forecast by almost one point. The national government expects a 7% growth of the Gross Domestic Product as a base for 2021, based on indicators that ratify a consolidation of the recovery of activity, employment, and the strengthening of public accounts. For the year 2022, the Fund expects a moderation in growth: it foresees an advance of 2.5%.
In the second month of the year, import operations for $400 million authorized with commercial credit. According to official data, this measure allowed the Central Bank to have a cash balance of almost $2.5 billion in the first two months of the year.
Mercado Libre will create 2,800 jobs in Argentina this year, increasing by 40% its workforce in the country; it is a significant challenge in a 100% virtual work environment. One thousand one hundred positions will be in technology development; 800 in shipping; 500 in customer service; 200 in administration and finance; 100 in fintech, and a similar number in other areas.
The Government is negotiating with China a package of investments in infrastructure works. Total disbursements will be around $35 billion. Among the priority projects are the construction of the Atucha III nuclear power plant. A consortium of Chinese banks led by the Industrial and Commercial Bank of China (ICBC) will finance it. It foresees a concession-type loan of $ 7.9 billion, which would cover 85% of the reactor's price. This amount would make the nuclear power plant the most significant Chinese investment outside its borders.
Moody's credit rating agency maintains a negative outlook on Argentina. The rating agency outlined this outlook in its most recent report on the country's situation. It points out that both the new SDR allocation and the increase in international commodity values will not reduce eventual default risk.