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Argentina Government Anticipates Economic Recovery and Decreasing Inflation Rates by 2024


Sep 16, 2023

According to a budget proposal sent to Congress by the Argentine Economy Ministry, the country’s economy is expected to grow by 2.7% in 2024. This comes after a contraction of 2.5% projected for this year. The budget proposal also predicts an annual growth rate of 2.0% for the period of 2025-2026. The growth in 2024 is expected to be driven primarily by the recovery in the agricultural sector, specifically in soybean and corn yields.

Moreover, the government expects the annual inflation rate to reach 135.7% in 2023 and 69.5% in 2024. The budget also shows that the government foresees a significant depreciation of the country’s currency, with the exchange rate projected to reach 607 pesos to the dollar in 2023, compared to the expected rate of 365.9 pesos to the dollar.

Argentina has been grappling with triple-digit inflation, which has greatly impacted consumers, who are constantly searching for more affordable options. In August, the monthly inflation rate reached 12.4%, the highest since 1991. This has pushed poverty levels above 40%, leading to increasing frustrations among the population and contributing to anger against traditional political elites ahead of the upcoming national elections in October.

Additionally, the country is currently working towards regaining a $44 billion agreement with the International Monetary Fund (IMF). This effort is made amidst an economic downturn caused by the peso’s continuous depreciation, negative central bank reserves, and the impact of drought on the agricultural sector.

In summary, Argentina’s proposed budget for the coming years indicates expectations of economic growth in 2024, driven by the recovery of the agricultural sector. However, the country continues to face significant challenges, such as high inflation rates, increasing poverty levels, and the need to regain its agreement with the IMF.

By Editor

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