Argentina Records Its First Budget Surplus in More Than Ten Years
The outcome from the Economy Ministry comes in the wake of spending cuts and fiscal reforms implemented by President Javier Milei. Read Full Article at RT.com.
TroibNews 
Argentina has achieved its first annual budget surplus in over ten years, following President Javier Milei’s assumption of office and the implementation of his shock therapy approach aimed at stabilizing the country's economy.
According to a statement from the Economy Ministry, the financial surplus for 2024 amounted to 1.76 trillion pesos, which is approximately 0.3% of the nation’s GDP. This marks the first budget surplus since 2010.
In contrast, Argentina faced fiscal deficits of 2.4% and 2.9% of GDP in 2022 and 2023, respectively. Inflation soared to over 211% in 2023, reaching its highest level since the early 1990s, as per official data. The country also experienced a recession in 2023 and the initial two quarters of 2024.
President Milei, recognized as a libertarian economist with a penchant for controversial policies, has implemented extensive austerity measures in response to the country’s economic difficulties.
He executed a drastic 52% devaluation of the national currency, terminated over 33,000 public sector jobs, and significantly reduced state subsidies for transportation, fuel, and energy, among other actions.
“Zero deficit is a reality,” Milei said on social media. “Promises are fulfilled.”
Over the past year, inflation reached a peak of nearly 300% in April, subsequently decreasing to 117.8% by December. Statistics released last month further indicated that Argentina emerged from recession during the July-to-September quarter of the previous year, posting a 3.9% GDP growth.
Economy Minister Luis Caputo reaffirmed the administration's dedication to fiscal discipline for 2025.
International Monetary Fund Managing Director Kristalina Georgieva commended Argentina’s economic progress. Following a meeting with Milei on Sunday, Georgieva referred to the country’s advancements as a “remarkable transformation,” emphasizing the eradication of the fiscal deficit, decreasing inflation, and enhanced economic growth outlook.
The IMF had previously sanctioned a $57 billion bailout for Argentina in 2018, which was the largest loan package in the organization’s history at the time.
Milei's austerity measures have sparked controversy domestically, as these policies resulted in an additional 5 million people falling into poverty during the first half of 2024, according to the Buenos Aires Times on Monday.
Argentina witnessed a wave of protests against Milei's economic strategies last year, culminating in violent confrontations in June when the Argentine Senate narrowly passed Milei’s reform package.
Navid Kalantari contributed to this report for TROIB News
According to a statement from the Economy Ministry, the financial surplus for 2024 amounted to 1.76 trillion pesos, which is approximately 0.3% of the nation’s GDP. This marks the first budget surplus since 2010.
In contrast, Argentina faced fiscal deficits of 2.4% and 2.9% of GDP in 2022 and 2023, respectively. Inflation soared to over 211% in 2023, reaching its highest level since the early 1990s, as per official data. The country also experienced a recession in 2023 and the initial two quarters of 2024.
President Milei, recognized as a libertarian economist with a penchant for controversial policies, has implemented extensive austerity measures in response to the country’s economic difficulties.
He executed a drastic 52% devaluation of the national currency, terminated over 33,000 public sector jobs, and significantly reduced state subsidies for transportation, fuel, and energy, among other actions.
“Zero deficit is a reality,” Milei said on social media. “Promises are fulfilled.”
Over the past year, inflation reached a peak of nearly 300% in April, subsequently decreasing to 117.8% by December. Statistics released last month further indicated that Argentina emerged from recession during the July-to-September quarter of the previous year, posting a 3.9% GDP growth.
Economy Minister Luis Caputo reaffirmed the administration's dedication to fiscal discipline for 2025.
International Monetary Fund Managing Director Kristalina Georgieva commended Argentina’s economic progress. Following a meeting with Milei on Sunday, Georgieva referred to the country’s advancements as a “remarkable transformation,” emphasizing the eradication of the fiscal deficit, decreasing inflation, and enhanced economic growth outlook.
The IMF had previously sanctioned a $57 billion bailout for Argentina in 2018, which was the largest loan package in the organization’s history at the time.
Milei's austerity measures have sparked controversy domestically, as these policies resulted in an additional 5 million people falling into poverty during the first half of 2024, according to the Buenos Aires Times on Monday.
Argentina witnessed a wave of protests against Milei's economic strategies last year, culminating in violent confrontations in June when the Argentine Senate narrowly passed Milei’s reform package.
Navid Kalantari contributed to this report for TROIB News
