On Sunday (15.Sep), the Argentine president presented an economic proposal that projects annual inflation of 18.3% and fiscal balance
The international market reacted well to the presentation of budget proposal for 2025 made by the President of Argentina, Javier Milei (La Libertad Avanza, right) on Sunday (15.Sep.2024). The country risk, measured by the investment bank JP Morgan, reached 1,359 points this Monday (16.Sep), the lowest since June, and the debt security appreciated almost 2%.
Argentina’s 2025 budget, as proposed by the libertarian, estimates annual inflation of 18.3% and has fiscal balance as its main objective. GDP (Gross Domestic Product) is expected to grow by 5% in 2026 and 5.5% in 2027. Here is the full of the proposal (PDF–885 kB, in Spanish).
The market reaction to the libertarian government is positive. Indicators that analyze country risk see the current administration as more responsible and capable of fulfilling its financial obligations, encouraging foreign investors to invest in Argentina.
Compared to the country risk of the same period of the previous year, when the nation was governed by former president Alberto Fernández, the index reached 2,371 points, suggesting a broad distrust of the international market towards the Kirchnerist.
The Argentine government’s commitment to ending the deficit also raises the Central Bank’s expectations for the economy. In May, the entity announced a cut in interest rates from 50% to 40%.
In the decision, the monetary authority said it had “noting that the government’s firm commitment to the zero fiscal deficit target increases credibility in the central anchor of the economic program and strengthens a trajectory of lower inflation expectations”.
#International #market #reacts #Mileis #budget #presentation