Argentina's Milei Cuts Taxes 90%, Achieves 2.4% Inflation, First Budget Surplus in 123 Years

Dec 11, 2024, 07:02 PM

Argentine President Javier Milei marked his first year in office on December 10, implementing a sweeping economic plan focused on reducing the size of the state to achieve macroeconomic balance and control inflation. Key achievements during his tenure include a massive 90% reduction in national taxes, resulting in Argentina's first budget surplus in 123 years. Inflation has decreased for seven consecutive months, dropping to 2.4% in November—the lowest since July 2020 and significantly below market expectations—though annual inflation still stands at 166%. Notably, inflation in food and beverages was only 0.9% in November. Milei announced plans to negotiate a free trade agreement with the United States next year during Argentina's presidency of Mercosur. The economic reforms have led to stabilization of the macroeconomy, with private sector employment and real wages growing for two consecutive months.