Argentina's Zero Deficit Policy: Austerity and Economic Forecast for 2025

Argentina's government reaffirms its commitment to a 'zero deficit' policy in 2025, as outlined in the first draft budget. The plan highlights President Javier Milei's focus on austerity to address fiscal deficits. The budget projects a 3.5% economic contraction and a slowed inflation rate under 130% by December.

Argentina will stick by its "zero deficit" policy in 2025, the government said in its first draft budget on Wednesday, underscoring libertarian President Javier Milei's continued focus on austerity to overturn years of fiscal deficits.

In the draft version of the 2025 budget, which is likely to be amended, the government predicted a 3.5% economic contraction this year, and said annual inflation would slow to under 130% by December when it saw the peso hitting 1,016 to the dollar.