With "iron" discipline and a policy of maximum savings, for the first time in more than 10 years, the Argentine economy has achieved this.

On February 17, Argentine Economy Minister Luis Caputo said that in January, for the first time since August 2012, Argentina had no budget deficit and achieved a surplus of more than 518 billion Pesos (equivalent to 600 million USD).

Kỷ luật 'thép' với chính sách 'thắt lưng buộc bụng', lần đầu tiên sau hơn 10 năm, kinh tế Argentina đạt được điều này. (Nguồn: Reuters)

The administration of Argentine President Javier Milei is very strict in implementing the 'austerity' policy. (Source: Reuters)

On his social media account X, Mr. Caputo announced that this was also the first time since 2011 that Argentina did not have a budget deficit in January and reaffirmed that the government would not negotiate on the “austerity” policy.

Since taking office last December, Mr. Caputo has repeatedly stressed that Argentina must cut state budget spending because the budget is exhausted.

President Javier Milei also commented on this positive signal by emphasizing that minimizing the budget deficit is extremely necessary in the current difficult context of the Argentine economy.

Previously, the National Institute of Statistics and Investigations of Argentina (INDEC) announced that the consumer price index in this country in January 2024 increased by 20.6% compared to the previous month, lower than the 25.5% increase recorded in December 2023.

According to Argentine Presidential Spokesperson Manuel Adorni, this is a sign that the country's inflation rate is showing signs of "cooling down".

In an effort to cut budget spending, President Milei's government has not renewed labor contracts and laid off thousands of public sector workers, cut subsidies for basic necessities, eliminated subsidies for public transport and fuel, as well as many social benefits and public health services.

This cut has met with strong opposition from trade unions, social organizations and workers.

However, the Argentine government remains adamant in implementing its “austerity” policy and has asserted that “there will be no negotiations” with the opposition on this issue.

Last week, President Milei's government failed to convince the House of Representatives to pass the Bus Law, a package of "shocking" reform policies aimed at maximally opening up the economy towards market freedom, reducing the regulatory role and impact of the State in macroeconomic management, in order to restore Latin America's third largest economy.

Mr. Milei's government, from the Liberal Party (LLA), holds a minority in parliament with 38 of the 257 seats in the House of Representatives and 7 of the 72 seats in the Senate, and insists it will run the country by decree.

However, Argentine public opinion said that the government is currently negotiating with other political parties in Congress to form a ruling coalition to seek the support of politicians in running the country.

Source