The Argentine Ministry of Economy announced that the government recorded its first surplus in about 12 years in January, while the new president, Javier Milei, continues to push for spending cuts.
The government said late Friday that January was the first full month for the Prime Minister in power after assuming office in December, and ended with a positive budget for the public sector with a surplus of $589 million at the official exchange rate.
The Ministry of Economy, as reported by the official news agency Telem, added that this “monthly financial surplus is the first since August 2012, and the first surplus in January since 2011.”
Milley is negotiating with the International Monetary Fund regarding his country’s $44 billion loan, pledging to achieve fiscal balance this year.
On Friday, Economy Minister Luis Caputo stated on the “X” platform that a zero deficit is non-negotiable.
Milly, an economic expert, has called for a sharp reduction in spending and lowering public debt as a way to steer the economy towards recovery.
After the peso depreciated by 50%, price controls were lifted and interest rates were raised, Argentina saw an inflation rate of 20.6% in January, with an annual rate of 254.2%.
The year 2023 came to an end, which was the last year of the center-left government of Alberto Fernandez, with an inflation rate reaching 211%.
With 45% of the population being affected by poverty, Millie expects an economic recovery to occur within three months.
