Medellín, Colombia – Argentina’s economy recorded a surge of 7.7% in April 2025 compared to the same month last year, outperforming projected growth rates for the Latin American nation.
Since the second half of 2024, the country has continued to emerge from its recession. According to a June report by Reuters, Argentina has recorded its fastest GDP growth since 2022.
Libertarian President Javier Milei strategized to revive Argentina’s failing economy — marked by high inflation and poverty rates — with his divisive ‘chainsaw’ austerity measures, characterized by decreased public spending and a keen focus on privatization initiatives facilitated by deregulation to incentivize competitive market activity.
Milei’s reforms demanded the patience and trust of the Argentinian people as the day-to-day realities of public spending cuts seemed far detached from the vision of economic prosperity that was being projected.
Food and living costs grew in tandem with Milei’s reduction of government subsidies for gas and electricity, affecting Argentina’s poorest in 2024. The president proclaimed, however, that an economic rebound, resulting from his policies, would occur gradually.
“In the first trimester of 2025, poverty was around 31.7%,” read an official statement from the Ministry of Human Capital shared via X. These rates account for a 20% decrease in poverty prevalence compared to the same period last year, a low that hadn’t been recorded since 2018.
Further, figures released by the National Institute of Statistics and Census of Argentina (INDEC) indicate that inflation is also on a steady decrease. Consumer prices rose by 1.5% in May, showing lower figures than in both April and March. This is the lowest rate since May 2020.
In more positive news, Argentina’s Central Bank predicted an annual inflation of 28.6% by the end of 2025 in a survey of market expectations published at the end of May. Should this be realized, it would mark a significant improvement from the 43.5% inflation recorded over the past 12 months.
JP Morgan’s recent regional report offered a more optimistic valuation of Argentina’s economy and even positioned it as one of the markets with the highest growth projections in Latin America for the second half of 2025.
Though many continue to observe (them) with a skeptical eye, Milei may hope to regain the confidence of the Argentinian people with his austerity measures which seem to have fostered his promised economic turnaround.
Featured image credit:
Image: President of Argentina Javier Milei speaking at the 2025 Conservative Political Action Conference (CPAC) at the Gaylord National Resort & Convention Center in National Harbor, Maryland.
Author: Gage Skidmore via Flickr.
Source: Creative Commons Licenses.
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