The country signed a $57 billion IMF financing agreement last year that included unpopular spending cuts that have hammered households and businesses already struggling with recession and high inflation.

The government says the outlook for Latin America's No. 3 economy is improving as President Mauricio Macri prepares to run for a second term in the October election.

The government says it expects inflation to end this year under 40.3pc. The rate over the 12 months through May was clocked at 57pc.

"I commend the Argentine authorities on their continued efforts and steadfast implementation of their economic policy program," IMF Acting Managing Director David Lipton said in the fund's statement.

"The authorities completed all their fiscal, monetary and the social expenditure targets."