SEB Group: Investment Outlook February 2025

Argentina is undergoing a significant economic transformation under President Javier Milei, who took office in December 2023. His policies focus on radical market reforms to tackle decades of economic mismanagement. These reforms have already impressed investors, companies, and the rest of the world. Due to deregulation, public expenditure cuts, and a slimmed-down government, inflation has fallen from 25% a month to 2.7%, and the central government budget is showing a surplus for the first time in 14 years. The country has seen an improvement in economic growth, and forecasts for 2025 indicate GDP growth of more than 5%. Despite these initial results, there are still significant challenges, including the need for sustainable economic growth, a stronger labour market, and reduced poverty, in order for the reforms to have a broader impact.