Argentina doing well under Milei

Argentine President Javier Milei has received approbation from analysts for his libertarian policies. They have downwardly revised the inflation projection while becoming more bullish about growth prospects.

“Argentine analysts nudged down their forecasts for this year's inflation, according to the central bank's market expectations survey published on Thursday, while also turning slightly more upbeat about economic growth in South America's No. 2 economy,” a Reuters report said. “The new forecast of an annual inflation rate of 23.2% was 2.7 percentage points lower than the average level predicted in last month's central bank survey. For January, analysts predicted month-on-month price rises of 2.3%.”

Meanwhile, International Monetary Fund’s top spokeswoman Julie Kozack said the top lender is holding “constructive discussions” with Argentina over a new financing agreement.

Analysts told Reuters that Argentina’ growth forecast will be 4.6 per cent by the end of 2025, 0.1 percentage point more than expected earlier. “The survey was taken between January 29 and 31 and polled 39 participants, including consultancies, research centers and financial entities.”

The World Bank has been more upbeat about Argentina. “Argentina’s growth is projected to rebound 5 per cent in 2025 and 4.7 per cent in 2026, following two years of recession. Key activity drivers during the forecast horizon are expected to include agriculture, energy, and mining, supported by macroeconomic stability and newly enacted business-friendly legislation. The government is expected to maintain a tight fiscal policy to support sustained progress in reducing inflation and uphold the current policy framework’s credibility.”