en flag
en flag

Investing in Argentina with Javier Milei!

President Javier Milei's reforms aim to revitalize Argentina's economy by deregulating markets, reducing public sector size, and improving fiscal discipline, including efforts to stabilize the central bank. International partnerships and potential free-trade agreements are being pursued to support a free-market approach. Early results show a decline in inflation and improved economic indicators. Challenges remain in ensuring balanced growth and managing risks from lifting currency controls.

9/11/20241 min read

A landscape featuring a residential area with white houses and terracotta roofs surrounded by dry grassland and rocky terrain. In the background, wind turbines are visible against a partly cloudy sky, while distant hills rise on the horizon.
A landscape featuring a residential area with white houses and terracotta roofs surrounded by dry grassland and rocky terrain. In the background, wind turbines are visible against a partly cloudy sky, while distant hills rise on the horizon.

Since assuming office in December 2023, President Javier Milei has implemented several reforms aimed at revitalizing Argentina's economy. Notable positive changes include:

1. Reduction in Inflation

  • Monthly Inflation Rate: Decreased from 25% in December 2023 to 2.7% in October 2024, the lowest in three years.

  • Annual Inflation Rate: Dropped from 211% in December 2023 to 193% in October 2024.

2. Achievement of Fiscal Surplus

  • Budget Surplus: Attained a primary fiscal surplus of 0.3% of GDP in January 2024, Argentina's first in over a decade.

3. Economic Growth

  • GDP Growth: Argentina exited a severe recession in the third quarter of 2024, with a 3.9% GDP increase compared to the previous quarter.

4. Reduction in Government Spending

  • Public Sector Downsizing: Reduced government spending by a third, halved the number of ministries, and dismissed 30,000 government workers.

5. Deregulation Measures

  • Abolition of Rent Controls: Eliminated rent controls, leading to a 40% drop in real terms for rent prices and a 300% increase in the supply of rental properties in Buenos Aires.

6. Strengthening of National Currency

  • Peso Appreciation: The Argentine peso appreciated by 44.2% against a basket of trading partners' currencies in 2024, enhancing its value.

7. International Trade Initiatives

  • Free Trade Agreement: Progressed towards a free trade agreement between the EU and Mercosur, with an agreement announced in December 2024.

These measures have contributed to stabilizing Argentina's economy, reducing inflation, achieving fiscal surplus, and promoting economic growth.