As expected, the Fund's Board of Directors approved the review of Argentina's program, although it made it clear that Massa failed to meet all goals. The IMF applauds the fiscal effort promised by...
The fiscal impact of Retirement' Mobility Law
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The fiscal impact of Retirement' Mobility Law
First week
November 2017
The pensions system deficit is currently around 2.5% of GDP. That is to say, it represents a large part of the fiscal deficit. Without changes or reforms, the pensions deficit will tend to grow over the next few years, putting pressure on the rest of the fiscal accounts.
There are multiple reasons for that. First, the public agency that manage pensions (ANSES) will continue to slowly return part of its revenues to the provinces. In addition, the number of retirees will grow faster than the population that is able to work. Lastly, and more importantly, retirements will continue growing in real terms, along with the ongoing Historical Reparation Program and the economic growth.