Argentine analysts project the 2025 inflation rate at 23.3%, up from earlier forecasts. Economic growth is estimated to reach 4.8%. The central bank has reduced interest rates amidst a declining inflation trend, with a focus on economic recovery and securing IMF support.
Analysts in Argentina project the country’s inflation rate for the end of 2025 to be approximately 23.3%. This figure reflects a modest increase of 0.1 percentage points compared to previous forecasts noted in last month’s central bank market expectations survey. Furthermore, the annual economic growth estimate for 2025 saw a slight uptick, rising by 0.2 percentage points to 4.8%.
The recent survey conducted from February 26 to 28 included responses from 39 participants, comprising consultancies, research centers, and financial entities. Anticipation surrounds the upcoming release by Argentina’s INDEC statistics agency, which will provide February’s inflation data on Friday and the economic growth metrics from the last quarter of 2024 on March 19.
In January, the central bank reduced its benchmark interest rate from 32% to 29%, attributing this decision to a decreasing trend in inflation rates. The monthly inflation recorded a slowdown to 2.2%, marking the lowest figure since mid-2020.
Although Argentina experienced inflation rates nearing 300% early last year, it has gradually declined to around 85% as of January. Key sectors such as hospitality and utilities have seen significant price rises, yet analysts expect last month’s inflation to either align with or exceed January’s numbers, anticipating a continuing downward trend for the year.
Addressing inflation remains a top priority for President Javier Milei’s government, which has implemented stringent austerity measures. The administration aims to sustain this downward momentum while seeking a fresh loan from the International Monetary Fund to bolster economic stability.
In summary, Argentine analysts forecast a year-end inflation of 23.3% for 2025, marking a slight increase from previous estimates. Economic growth predictions also see a minor upward adjustment to 4.8%. The government is focused on controlling inflation as it has decreased significantly from previous highs, with measures in place aimed at fostering financial stability and securing external loans.
Original Source: www.marketscreener.com
