Argentina achieves a financial surplus of US$620 million for the first time in 12 years

Argentina last January recorded a financial surplus of 518,408 million Argentine pesos (US$ 620 million), product of a primary surplus and the payment of interest from the public debtas reported this Friday by official sources.

This is the country’s first positive financial result since August 2012 and in January since 2011, according to data from the Ministry of Economy.

In the first month of the year, Argentina registered a primary surplus of 2.01 trillion Argentine pesos (US$ 2,408 million), where total income reached 6.1 trillion (US$ 7,361 million), an increase of 256.7% year-on-year.

Regarding tax collection, there was a growth of 256.9% due to the performance of foreign trade and domestic economic activity in Argentina.

These results are related to the strong cuts in public spending, which President Javier Milei has carried out since he took office last December 10, a fiscal ‘shock’ plan such as the elimination by decree of this day of millionaire trust funds.

Capital expenditures (energy, transportation, education, housing, drinking water and sewage, among others) fell by 50.3% year-on-year in net terms, although the evolution of inflation is taken into account, from 254% year-on-year in January, the fall in real terms is greater.

In the last month of the year, Argentina’s primary deficit was US$ 2,384 million, where the financial deficit stood at US$ 6,383 million, throughout 2023 the country had a drop of 2.9% of GDP.

In this sense, the Argentine president celebrated the January fiscal result on social networks, reaffirming the slogan: “The zero deficit is not negotiated”which had included the Minister of Economy, Luis Caputoin its X account, after announcing the country’s first financial surplus in 12 years.