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Argentina Projects 23.3% Inflation And 4.8% Growth For 2025
(MENAFN- The Rio Times) Argentina's economy shows strong signs of recovery as experts project a 23.3% inflation rate and 4.8% GDP growth for 2025. The latest Market Expectations Survey released by Argentina's Central Bank confirms this positive outlook after years of economic turbulence.
The projected inflation represents a dramatic improvement from the 117.8% recorded last year. Monthly inflation has already decreased significantly, reaching 2.2% in January 2025. Analysts expect February's rate to hover around 2.3%, maintaining the downward trend.
President Javier Milei's strict economic policies have started bearing fruit. His government implemented an unmovable fiscal rule targeting zero deficit and eliminated money printing by the Central Bank . These measures helped Argentina achieve a fiscal surplus for the first time in 14 years.
The Central Bank reduced its benchmark interest rate from 32% to 29% in January, acknowledging the improving economic landscape. January's 2.2% monthly inflation marked the lowest rate since mid-2020, while annual inflation stood at approximately 85%.
International financial institutions share this optimistic outlook. The World Bank and IMF both forecast approximately 5% growth for Argentina in 2025. Trading Economics projects even stronger performance with GDP growth reaching 5.1% by year-end.
Argentina's Economic Recovery and Currency Stabilization
Economic recovery will likely be led by energy, mining, agriculture, and other sectors linked to natural resources. Analysts believe the ongoing disinflation will increase real wages and improve consumption, with credit markets serving as an additional buffer.
The tax amnesty plan launched in August 2024 has already generated new financial flows exceeding $22 billion. This initiative aimed at reactivating the private sector rather than collecting taxes.
Argentina's currency stabilization efforts continue as experts predict the nominal exchange rate will reach 1,175 pesos per dollar by December 2025. The exchange rate gap between official and market quotations has narrowed significantly.
The country's economic prospects appear strong compared to regional neighbors. While Latin America expects overall growth of 2.5% in 2025, Argentina will likely outperform most countries in the region despite ongoing challenges.
The projected inflation represents a dramatic improvement from the 117.8% recorded last year. Monthly inflation has already decreased significantly, reaching 2.2% in January 2025. Analysts expect February's rate to hover around 2.3%, maintaining the downward trend.
President Javier Milei's strict economic policies have started bearing fruit. His government implemented an unmovable fiscal rule targeting zero deficit and eliminated money printing by the Central Bank . These measures helped Argentina achieve a fiscal surplus for the first time in 14 years.
The Central Bank reduced its benchmark interest rate from 32% to 29% in January, acknowledging the improving economic landscape. January's 2.2% monthly inflation marked the lowest rate since mid-2020, while annual inflation stood at approximately 85%.
International financial institutions share this optimistic outlook. The World Bank and IMF both forecast approximately 5% growth for Argentina in 2025. Trading Economics projects even stronger performance with GDP growth reaching 5.1% by year-end.
Argentina's Economic Recovery and Currency Stabilization
Economic recovery will likely be led by energy, mining, agriculture, and other sectors linked to natural resources. Analysts believe the ongoing disinflation will increase real wages and improve consumption, with credit markets serving as an additional buffer.
The tax amnesty plan launched in August 2024 has already generated new financial flows exceeding $22 billion. This initiative aimed at reactivating the private sector rather than collecting taxes.
Argentina's currency stabilization efforts continue as experts predict the nominal exchange rate will reach 1,175 pesos per dollar by December 2025. The exchange rate gap between official and market quotations has narrowed significantly.
The country's economic prospects appear strong compared to regional neighbors. While Latin America expects overall growth of 2.5% in 2025, Argentina will likely outperform most countries in the region despite ongoing challenges.
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