Wednesday, 22 May 2024
WorldArgentina registers a financial surplus of 620 million dollars, after 12 years

Argentina registers a financial surplus of 620 million dollars, after 12 years


Last January, Argentina recorded a financial surplus of 518,408 million Argentine pesos (equivalent to 620 million dollars), derived both from a primary surplus and from compliance with interest payments on the public debt, official sources reported last Friday.

This is the country’s first positive financial result since August 2012 and in the month of January since 2011, according to data from the Ministry of Economy.

In the first month of the year, Argentina registered a primary surplus of 2.01 trillion Argentine pesos (2,408 million dollars), where total income reached 6.1 trillion (7,361 million dollars), an increase of 256.7% year-on-year.

Regarding tax collection, there was a growth of 256.9% due to the performance of foreign trade and domestic economic activity in Argentina.

These results are related to the strong cuts in public spending, which President Javier Milei has carried out since he took office last December 10.a fiscal ‘shock’ plan such as the elimination by decree of this day of millionaire trust funds.

Capital expenditures (energy, transportation, education, housing, drinking water and sewage, among others) fell by 50.3% year-on-year in net terms, although the evolution of inflation is taken into account, from 254% year-on-year in January , the fall in real terms is greater.

In the last month of the year, Argentina’s primary deficit was 2,384 million dollars, where the financial deficit stood at 6,383 million dollars, throughout 2023 the country had a drop of 2.9% of GDP.

In this sense, The Argentine president celebrated the January fiscal result on social networksreaffirming the slogan: “The zero deficit is not negotiated”, which the Minister of Economy, Luis Caputo, had included in his X account, after announcing the country’s first financial surplus in 12 years.

Y.C.

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