Argentina's Fiscal Reforms and Economic Recovery: Tax Implications for Auditors

Edited by: Elena Weismann

Argentina is showing signs of economic recovery in 2025, driven by fiscal reforms and deregulation policies initiated by President Javier Milei. These measures include a significant reduction in public spending and a decrease in inflation from 270% to just over 40%.

The International Institute of Finance (IIF) highlights Argentina's "bolder" stabilization process, emphasizing fiscal discipline. The removal of the "cepo cambial," which restricted access to US dollars, is a key step.

The real economy is showing recovery, especially in the export sectors. Improvements in investment conditions are noted, driven by macroeconomic stabilization, deregulation, and a floating exchange rate.

Private sector credit is increasing, and banks are shifting focus from public securities to private credit. The government's access to capital markets remains restricted, but signs of normalization are emerging.

Despite the government's commitment, global investors remain cautious due to limited external reserves and financial system size. Sustaining progress requires deeper reforms, institutional support, and private investment mobilization.

Sources

  • CNN Brasil

  • Recaudación de impuestos de Argentina crece 43,3% interanual en junio: Comunicado

  • La economía argentina da buenas noticias a Javier Milei pese al frenazo global

  • What does it mean that President Milei ended Argentina's strict controls on currency and capital?

  • IMF 'mountain of dollars' key to unlock Argentina's FX controls

  • What do we know about Argentina's IMF deal and FX policy?

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