Argentine analysts predict a 2025 inflation rate of 23.3%, with a slight rise in economic growth forecast to 4.8%. Recent data show a decrease in inflation, prompting an interest rate reduction. The government aims to maintain this trend amid austerity measures and seeks new IMF support.
According to a recent survey by Argentina’s central bank, analysts maintain their inflation forecast for the end of 2025 at 23.3%, reflecting a slight increase of 0.1 percentage points from the previous month. Furthermore, analysts have raised their economic growth forecast for the same year by 0.2 percentage points, predicted to reach 4.8%. The survey, conducted from February 26 to 28, included input from 39 participants such as consultancies, research centers, and financial institutions.
The INDEC statistics agency is expected to release its February inflation data on Friday, as well as the economic growth figures for the last quarter of 2024 on March 19. Earlier in January 2025, the central bank reduced its benchmark interest rate from 32% to 29%, attributing this decision to a decreasing inflation trend, with the monthly rate dropping to 2.2%, the lowest since mid-2020.
Although Argentina’s annual inflation had approached 300% early last year, it has since declined significantly, settling at around 85% in January 2025. The steepest increases were reported in hospitality services, housing, and utility bills. Analysts expect that inflation for February will align closely with or slightly exceed January figures, anticipating a continued downward trend throughout the year.
The reduction of inflation remains a vital objective for President Javier Milei’s administration, which has implemented stringent austerity measures. The government seeks to sustain this positive trajectory while negotiating a new loan agreement with the International Monetary Fund.
In summary, Argentine analysts forecast a year-end inflation of 23.3% for 2025 and a growth rate of 4.8%. Recent data indicates a decrease in monthly inflation, reflecting the government’s focus on economic stability. Despite challenges, including high previous inflation rates, there is optimism for a continued decline in inflation figures as the government pursues austerity and seeks support from international financial institutions.
Original Source: money.usnews.com
