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Argentina posts six months of fiscal, financial surpluses

Published 07/16/2024, 04:07 PM
Updated 07/16/2024, 04:11 PM
© Reuters. FILE PHOTO: Argentine President Javier Milei looks on as he is received by German Chancellor Olaf Scholz at the Chancellery in Berlin, Germany, June 23, 2024. REUTERS/Liesa Johannssen/File Photo

BUENOS AIRES (Reuters) - Argentina posted primary fiscal and financial surpluses in June, the economy ministry said on Tuesday, showing the fruits of a drastic austerity package rolled out by libertarian President Javier Milei, who took office in December.

Both the fiscal and financial balances are the sixth consecutive monthly surpluses, and June's financial surplus - which includes interest payments by the government - is the first time since 2008 that six in a row have been recorded, the ministry added.

The public sector logged a primary fiscal surplus of 488.57 billion Argentine pesos ($535.71 million) and a financial surplus of 238.12 billion pesos in June, down from surpluses in the trillions of pesos in the prior month.

Milei's government has vowed to reach a "zero deficit" this year to right the South American country's embattled economy.

The fiscal surplus in the first half of 2024 reached 1.1% of the nation's gross domestic product (GDP), with the financial surplus at about 0.4% of GDP, the economy ministry said.

"As such, the government's fiscal anchor continues to consolidate," the ministry said.

© Reuters. FILE PHOTO: Argentine President Javier Milei looks on as he is received by German Chancellor Olaf Scholz at the Chancellery in Berlin, Germany, June 23, 2024. REUTERS/Liesa Johannssen/File Photo

Milei blames years of over-spending and deep fiscal deficits for Argentina's economic woes, which include a triple-digit inflation rate.

($1 = 912 Argentine pesos)

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