Why is a country like Argentina facing economic crisis after so many years of Bank help?
Argentina has emerged from a long recession, as shown by expectations its economy will grow by around 7% in 2004. This continues from a strong economic recovery that began in 2003. The government is projecting 4% growth in 2005. The fiscal situation is better than planned with a large primary surplus, well in excess of 3% of GDP. The Bank actively supported Argentina during its long crisis, providing funds for education and other basic services during the recession when Argentina was largely unable to receive financing from other sources and its budget was in deficit. The Bank plans to provide a further $2 billion to Argentina through to the end of 2005, including up to $1.2 billion in new investment in health, education, social protection and infrastructure projects.
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