Argentina Achieves First Budget Surplus Since 2010 Amid Staggering Challenges

ARArgentina|

Argentina's President Javier Milei announced on January 18, 2025, that the country has achieved its first budget surplus since 2010. This announcement coincided with his implementation of a drastic economic plan, termed "shock therapy," aimed at stabilizing the nation’s economy. Amid ongoing high inflation and a deepening recession, Milei declared on social media that "the promises have been fulfilled" and touted the successful establishment of a "zero deficit" budget.

Milei's fiscal strategy has been marked by significant cuts to public spending, including reductions in social programs and subsidies, as well as the dismissal of numerous public sector employees. These measures, designed to rein in government expenditure, resulted in a projected revenue increase of 0.3% of GDP for 2024, according to Economy Minister Luis Caputo.

However, the austerity measures have had severe social repercussions; the inflation rate remains high at 117.8%, making Argentina one of the countries with the highest inflation globally. Furthermore, five million additional citizens fell below the poverty line in the first half of 2024, leading to 52.9% of the population now living in poverty, with extreme poverty increasing from 11.9% to 18.1%.

Despite the criticisms of his economic policies and the immediate suffering they have inflicted, Milei maintains that these tough measures are essential for long-term recovery, predicting a GDP growth of 5% in 2025. The country is also engaged in challenging negotiations with the International Monetary Fund (IMF) over a new support program after the previous $44 billion aid package expired. Milei is scheduled to meet with IMF Director Kristalina Georgiewa in Washington prior to the inauguration of the newly elected US President Donald Trump.

Weekly Newsletter

Loading...

More from Argentina

Infamous 'Death Flight' Plane Returned to Argentina’s ESMA Museum

A Skyvan PA-51 aircraft, historically used by Argentina’s military dictatorship to carry out "death flights" during the 1970s, has been returned to Buenos Aires and is now on display at the ESMA museum. This plane was discovered in Fort Lauderdale, Florida, in 2008 by journalist Miriam Lewin and Italian photographer Giancarlo Ceraudo, shedding light on the regime's methods of terror, which included dropping alleged dissidents from the aircraft into the South Atlantic Ocean. The military dictatorship, responsible for the disappearance of up to 30,000 people during the Dirty War, utilized these flights to eliminate evidence of their crimes, according to Lewin, a former political prisoner herself. The plane reportedly logged evidence linking it to several death flights, and the identification of its pilots led to life sentences for those involved in these atrocities in 2017. The Skyvan’s return is part of Argentina’s ongoing efforts to confront its past. The ESMA museum now serves as a memorial for the victims and as an educational space for future generations about the horrors of state terrorism.
ARArgentina

Plane Used for Argentina's "Death Flights" Discovered in Florida and Returned Home

A Skyvan PA-51 aircraft, notorious for its use in Argentina's military dictatorship during the "Dirty War," has been returned to Buenos Aires after being located in Florida. The plane had been utilized for "death flights," where alleged dissidents were sedated and then thrown from the aircraft into the South Atlantic Ocean, a grim method implemented to eliminate evidence of the dictatorship's crimes, as recounted by journalist Miriam Lewin, who survived imprisonment under the regime. The plane was found in 2008 by Lewin and Italian photographer Giancarlo Ceraudo at a skydiving facility in Fort Lauderdale. Unaware of its dark history, the facility’s owners provided vital logs connecting the aircraft to various death flights, including one that coincidentally helped identify victims later recovered along the Argentine coast. In June 2023, the Skyvan was officially returned to Argentina and is now displayed at ESMA, a museum dedicated to the victims of the military coup, signifying a significant step in confronting past atrocities.
ARArgentina

Calls for Impeachment Emerge as Argentina's Crypto Endorsement Backfires

Opposition politicians in Argentina are pushing for the impeachment of President Javier Milei following his endorsement of the $Libra cryptocurrency, which collapsed shortly thereafter, incurring significant financial losses for investors. On February 16, Milei promoted the cryptocurrency as a means to stimulate economic growth and support small businesses, leading to an initial spike in its value before it plummeted to under $1 after reaching nearly $5, according to trading sites. Some economists described the incident as a potential “rug pull,” a type of scam involving the sudden collapse of a cryptocurrency after it has been artificially inflated, as reported by Argentina's fintech chamber. In the aftermath, Milei deleted his endorsement post, stating he was "not aware of the details" of the project. His actions prompted legal complaints, with one plaintiff alleging participation in fraud, while lawmakers criticized him for undermining Argentina's international reputation. Former president Cristina Fernández de Kirchner condemned him on social media, arguing he leveraged his presidential status for personal gain. Analysts caution that this incident could significantly impact Milei's credibility as Argentina heads into midterm elections.
ARArgentina
All Argentina News ->