Argentina Achieves Budget Surplus After 14 Years

Argentina has achieved its first budget surplus in over a decade, with a total surplus of 1.76 trillion pesos, or 0.3% of GDP, marking a significant victory for President Javier Milei and his austerity measures. The primary fiscal balance saw an even larger surplus of 10.41 trillion pesos, or 1.8% of GDP, highlighting Milei's drastic cuts to public spending since taking office in December 2023. These measures included halting public works, slashing pensions, and reducing government jobs, which were aimed at curbing inflation that peaked at nearly 300% last year. Despite some political opposition, Milei's austerity approach has garnered considerable public support, with his approval rating remaining around 50%. The government plans to maintain its fiscal discipline through 2025, although December's data showed a primary deficit, attributed to seasonal spending patterns. Overall, this fiscal turnaround reflects a substantial adjustment from a previous financial deficit of 4.4% of GDP to a surplus in just one year.