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Montevideo, April 24th 2024 - 18:22 UTC

 

 

Argentina achieves financial surplus for the first time in 12 years

Saturday, February 17th 2024 - 10:34 UTC
Full article 6 comments
“Vaaaaaaaaaaaamoooooo Toto...!!!,” Milei congratulated Caputo on social media “Vaaaaaaaaaaaamoooooo Toto...!!!,” Milei congratulated Caputo on social media

The Argentine government of President Javier Milei announced Friday in Buenos Aires that the country had achieved a financial surplus for the first time in 12 years. In the first full month of the new administration, tax revenues grew by 256.9% which in addition to stringent cuts in public expenditure yielded these results, it was explained.

 In December 2023, Argentina's primary deficit was US$ 2.384 billion, with a financial deficit of US$ 6.383 billion for a yearly 2.9 % drop of the Gross Domestic Product (GDP). Capital expenditures (energy, transportation, education, housing, drinking water, and sewage, among others) fell by 50.3% year-on-year in net terms. However, if the 254% interannual inflation is taken into account, the reduction is even more considerable.

It was Argentina's first positive financial result since August 2012, Economy Minister Luis Toto Caputo noted. In January, the National Public Sector recorded a financial surplus of AR$ 518.408 billion (US$ 620 million) from a primary surplus and interest payments on public debt. It was also the “first financial surplus in a January month since 2011,” the authorities went on.

Echoing President Milei, Caputo posted on social media that a “Zero deficit is not negotiated” while the head of state posted an encouraging message for his official: “Vaaaaaaaaaaaamoooooo Toto...!!!” followed by his traditional war cry “Viva la Libertad Carajo” (long f***ing live freedom).

Also last month, Argentina's public debt went up by US$ 10 billion as a consequence of its adjustment in pesos tied to inflation and the dollar, and due to the net increase of liabilities with the International Monetary Fund (IMF).

On the foreign trade front, export duties grew 574.3% yoy and import duties recorded an increase of 377.3%. In comparison, the PAIS Tax (a surcharge on expenditures abroad to make up for the gap between the official and the parallel exchange rates between the Argentine peso and the US dollar) recorded a year-on-year increase of 1,302.3%. Social Security Contributions went up 165.7% while last month property income grew by 327.4% y.a.

Categories: Economy, Politics, Argentina.

Top Comments

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  • Chicureo

    This is indeed very encouraging, but the marvelous changing of the Argentine economy via strict budget controls is outstanding.

    ¡Viva la Libertad Carajo!

    Meanwhile, our table grape harvest is progressing exceptional well with excellent weather.

    Absolutely no problems obtaining skilled labor and both the UK and USA markets are excellent.

    Unfortunately shipping logistics have been a nightmare.

    ¡Saludos de Panquehue!

    Feb 17th, 2024 - 12:23 pm 0
  • Chicureo

    Dear Tænk

    The regretful arson in Chile has affected several areas. Fortunately the Aconcagua Valley is unaffected.

    As far as Argentina, I sincerely hope your country has the strength to endure the strict policy of austerity.

    I sincerely wish my neighbors all the best.

    As mentioned, my only commercial problem is outrageous shipping costs, especially with the Panama Canal problems.

    ¡Viva la Libertad Carajo!

    Feb 17th, 2024 - 04:23 pm 0
  • Chicureo

    Tænk

    Thanks for your marvelous idea of not paying shipping freight...

    ...life would be so much easier if we would not be entangled with Danish shipping pirates...

    ¡Viva la Libertad Carajo!

    Feb 17th, 2024 - 06:15 pm 0
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