Argentina Reports Fiscal and Financial Surpluses for Past 6 Months

Argentina achieved primary fiscal and financial surpluses in June, as announced by the economy ministry on Tuesday, showcasing the impact of the strict austerity measures implemented by President Javier Milei, who assumed office in December.

June marks the sixth consecutive month of both fiscal and financial surpluses, with the financial surplus, including government interest payments, recording six consecutive months for the first time since 2008, according to the ministry.

In June, the public sector registered a primary fiscal surplus of 488.57 billion Argentine pesos ($535.71 million) and a financial surplus of 238.12 billion pesos, down from the surpluses in the trillions of pesos the previous month.

The goal of Mr. Milei’s administration is to achieve a “zero deficit” this year to stabilize Argentina’s struggling economy.

For the first half of 2024, the fiscal surplus amounted to 1.1 percent of the country’s GDP, with the financial surplus at around 0.4 percent of GDP, as reported by the economy ministry.

“Therefore, the government’s fiscal policy remains strong and stable,” stated the ministry.

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Mr. Milei attributes Argentina’s economic challenges, including triple-digit inflation, to years of excessive spending and substantial fiscal deficits.

($1 = 912 Argentine pesos)