Saturday, April 1, 2023

Argentina closes 2022 with a primary fiscal deficit of 2.4% of GDP

Argentina closed 2022 with a primary fiscal deficit of 1,955,140.8 million pesos (about US$10,660.4 million), which is equivalent to 2.4% of the gross domestic product (GDP), according to official sources reported this Friday.

According to the data released by the Ministry of Economy, the financial fiscal result, which includes the payment of debt commitments, showed a negative balance of 3,448,150 million pesos (US$18,801 million), which, measured in terms of GDP, would represent a deficit of 4.2%.

In a statement, the Ministry of Economy indicated that this primary deficit is “the product of fiscal policy decisions” aimed at “ordering public accounts and pre-existing deviations”, while at the same time it supposes an “overcompliance” with the fiscal goal established in agreement with the International Monetary Fund (IMF).

According to the extended facilities program agreed with the multilateral organization, and destined to refinance a loan of more than US$40,000 million, Argentina had to reduce its deficit to 2.5% of GDP in 2022, from the 3% registered the previous year.

Regarding the data for December 2022, Argentina recorded a primary deficit of 502,128 million pesos (US$2,737.8 million), which represents an advance of 1.1% compared to the same month of 2021, well below the inflation rate. (94.8% year-on-year in December).

Meanwhile, the financial deficit as of December 2022 reached 745,717.1 million pesos (US$4,066 million), an increase of 45.65% compared to the same month of the previous year.

According to the 2023 Budget, the primary deficit of the national public sector projected for 2023 will be 1.9%, improving compared to the 2.5% deficit of 2022.

The Argentine economy grew by around 5% in 2022, according to government estimates, after experiencing a rebound of 10.3% the previous year.


Please enter your comment!
Please enter your name here

Latest article