Argentina Analysts Forecast 23.3% Inflation for 2025

Argentina’s analysts forecast a 2025 inflation rate of 23.3% and a 2025 economic growth of 4.8%. The central bank lowered its benchmark interest rate as inflation trends downwards. Critics have expressed concerns about the effects of austerity measures implemented by President Javier Milei’s government.

According to a survey by Argentina’s central bank, analysts predict the inflation rate for 2025 will reach 23.3%, a slight increase of 0.1 percentage points over the previous month’s forecast. Additionally, the analysts have revised their annual economic growth projection upward to 4.8%, marking an increase of 0.2 percentage points.

The survey, conducted from February 26 to 28, involved 39 participants, including consultancies and financial entities. The INDEC statistics agency is expected to release February’s inflation rates on Friday and the economic growth data for the last quarter of 2024 on March 19.

In a move to combat inflation, the central bank reduced its benchmark interest rate from 32% to 29% in January, as monthly inflation fell to 2.2%, the lowest since mid-2020. However, year-over-year inflation, which had peaked near 300% early last year, dropped to approximately 85% in January.

While analysts expect that February’s inflation will remain at or slightly above January’s levels, they believe the overall trend will continue to decline throughout the year. The administration of President Javier Milei prioritizes reducing inflation through stringent austerity measures and is striving to secure a new loan from the International Monetary Fund.

In summary, Argentine analysts foresee an inflation rate of 23.3% for 2025 with a slight positive adjustment in economic growth expectations to 4.8%. Despite ongoing economic challenges, recent measures have contributed to a downward trend in inflation. The current administration’s commitment to fiscal discipline is evident as it seeks international financial support to stabilize the economy.

Original Source: money.usnews.com