Reports from Argentina's Ministry of Economy or international financial organizations

Argentina Secures First Fiscal Surplus in Over a Decade, IMF Projects 5% Growth for 2025-2026

Jan 17, 2025, 05:30 PM

Argentina achieved its first annual fiscal surplus in over a decade in 2024, marking a significant milestone under President Javier Milei's administration. The country recorded a primary surplus of 1.8% of GDP and a financial surplus of 0.3% of GDP, a feat not seen since 2010. This achievement comes amidst a backdrop of economic adjustments, including a 4.7% GDP reduction in fiscal spending from the previous year. The surplus was attributed to stringent budget cuts, particularly affecting pensions and retirement funds, which bore 19% of the total spending reduction. Despite the surplus, Argentina experienced a recession and a sharp rise in poverty rates to 52.9% in the first half of 2024, although there are indications of improvement in the latter half of the year. The International Monetary Fund (IMF) has upgraded its growth forecasts for Argentina, projecting a 5% growth for both 2025 and 2026, following a 2.8% contraction in 2024. These projections come ahead of a meeting between President Milei and IMF Managing Director Kristalina Georgieva, as Argentina negotiates a new agreement with the IMF.