Argentina Achieves First Budget Surplus in Over a Decade “`

President Javier Milei’s austerity measures have yielded positive results.

Argentina achieved its first annual budget surplus in over a decade, following President Javier Milei’s implementation of shock therapy economic reforms since taking office.

The Economy Ministry announced a 1.76 trillion-peso surplus (approximately $4.5 billion) for 2024, representing 0.3% of GDP. This marks the first 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, its highest since the early 1990s, alongside a recession spanning 2023 and the first half of 2024.

President Milei’s controversial austerity program included significant currency devaluation (52%), public sector job cuts (over 33,000), and reductions in state subsidies for various sectors.

“Zero deficit is a reality,” Milei declared on social media. “Promises are fulfilled.”

Inflation, peaking near 300% in April, gradually decreased to 117.8% by December.

Argentina exited recession in the third quarter of 2024, with GDP growth reaching 3.9%.

Economy Minister Luis Caputo affirmed the government’s commitment to continued fiscal discipline in 2025.

IMF Managing Director Kristalina Georgieva commended Argentina’s economic progress.

Following a meeting with Milei, Georgieva described the nation’s transformation as “remarkable” on X, citing the eliminated fiscal deficit, falling inflation, and improved growth outlook.

The IMF provided a $57 billion bailout to Argentina in 2018, its largest loan at the time.

Milei’s austerity policies have sparked controversy, with the Buenos Aires Times reporting an additional 5 million people fell into poverty during the first half of 2024.

Protests against Milei’s economic reforms occurred throughout last year, culminating in violent clashes in June following the Senate’s approval of his reform package.