Economic Growth Forecasts Lowered in Argentina
As economists in Argentina downgrade this year's growth forecasts, economic stagnation and low approval ratings are complicating President Javier Milei's bid for reelection next year.
Argentine economists have reduced their growth expectations for this year from 3.5 percent to 2.7 percent. These developments, falling short of the 5 percent target in the government's budget, combined with low approval ratings, jeopardize President Javier Milei's chances in next year's elections.
Growth Forecasts Revised Downward
Economists have lowered Argentina's growth forecast for this year from 3.5 percent last December to 2.7 percent.
The latest figures announced fall well behind the 5 percent growth target projected in the annual budget prepared by the government.
Tight Policy Stance and Recession
Many analysts state that economic growth in the country has currently come to a complete standstill and that a recession is underway.
Experts point out that the government's excessively tight policy stance, maintained by avoiding external borrowing, plays a role in this slowdown.
Central Bank Admission of Loss of Momentum
Central Bank President Santiago Bausili also confirmed the loss of momentum, noting that the economy has grown at an annualized rate of about 2 percent since 2024.
Election Process and Low Approval Ratings
Although triple-digit inflation has been successfully reduced to around 34 percent, the worsening economic outlook is raising concerns.
An AtlasIntel poll conducted in July revealed that President Javier Milei's approval rating remained at 37.1 percent.