Argentina’s government expects inflation to fall to 22.7% and the economy to grow by 5.5% in 2025, according to official budget plans.

This marks a big change from the country’s recent struggles with high inflation and shrinking output. In 2023, inflation reached 211%, and the economy shrank by 1.8% in 2024.

To address these problems, the government cut public spending, stopped printing money to cover deficits, and let the peso’s exchange rate move more freely. These actions helped slow inflation, which dropped to 47% by April 2025.

Monthly inflation hit a five-year low of 1.5% in May, based on data from Argentina’s statistics agency. The government projects growth across key sectors in 2025. Agriculture should grow by 2.1%, industry by 5.3%, and commerce by 7.6%.

Investment is expected to jump by 22.7%, and private consumption by 7.2%. Exports may rise by 3.7%, while imports could increase by 25.2%. Officials also expect a budget surplus of 1.6% of GDP, which is better than targets set with international lenders.

Argentina Targets 22.7% Inflation and 5.5% Economic Growth for 2025. (Photo Internet reproduction)

These changes followed strict reforms, including cutting subsidies, reducing public jobs, and easing trade limits. The government also changed currency controls and worked to stabilize the peso.

International groups like the World Bank and OECD say these steps have helped Argentina’s recovery. Still, challenges remain. Argentina’s inflation is the highest in the G20, even if it is falling.

Unemployment was 6.4% at the end of 2024, and real wages are only starting to recover. The government needs to keep its policies on track to make sure the recovery lasts.

Argentina’s 2025 outlook shows how tough economic changes can help a country recover from years of trouble. For businesses and investors, the improving numbers offer hope, but risks remain as Argentina works to keep its economy stable.