With a Gross Domestic Product (GDP) of approximately US$640 billion, Argentina is one of the largest economies in Latin America.
Argentina has vast natural resources in energy and agriculture. Within its 2.8 million square kilometers territory, Argentina is endowed with extraordinary fertile lands, gas, and lithium reserves, and has great potential for renewable energy. The country is a leading food producer with large-scale agricultural and livestock industries. In addition, Argentina has significant opportunities in some manufacturing subsectors, and in innovative services in high tech industries.
In 2024, the economy contracted by 1.7%, reflecting both the recession that began at the end of 2023¡ªdue to a severe drought and the accumulation of significant economic imbalances¡ªand the initial effects of the macroeconomic stabilization program implemented at the beginning of 2024. However, in the second half of the year, economic activity began to recover. By January 2025, GDP had reached levels close to those of March 2023, surpassing the decline recorded since the end of 2023.
Since December 2023, Javier Milei's administration has undertaken a macroeconomic stabilization process based on a strong correction of the fiscal and external deficit, the realignment of relative prices, and the reduction of monetary imbalance.
The initial results have been positive. The national government achieved a fiscal surplus for the first time in many years and reduced monthly inflation from 25.5% in December 2023 to 2.4% in February 2025. As a result, the country risk dropped significantly, from 2,500 basis points in August 2023 to around 700-800 basis points at the beginning of 2025, although it remains one of the highest in the region. Simultaneously, social protection measures were implemented, including real increases in benefits for the most vulnerable sectors (Universal Child Allowance and Alimentar program).
By 2025, a growth of 5.5% is projected, driven by the consolidation of macroeconomic stability, investment in the energy sector, and a favorable performance of the agro-industrial sector in the context of benign climatic conditions.
In April 2025, the government initiated an Extended Fund Facility (EFF) program with the IMF as part of an international effort together with the World Bank Group and the Inter-American Development Bank (IDB) to support the reform path that Argentina is implementing and help the country foster long-term growth and employment opportunities. Argentina received an initial disbursement of US$12 billion from the IMF along with a disbursement of US$1.5 billion from the World Bank to support measures accompanying macroeconomic stabilization, protect the most vulnerable, and promote trade and private sector investments.
Last Updated: Apr 23, 2025