## Argentina Looks Forward

_IMF Blog, July 31, 2026_

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**Canonical URL:** [Argentina Looks Forward](https://www.imf.org/en/blogs/articles/2026/07/31/argentina-looks-forward)

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## Bibliographic details
- Authors: Kristalina Georgieva
- Published: July 31, 2026

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### Impressive stabilization
- Context two and a half years ago: government running constant deficits; inflation exceeded 200 percent; the economy was contracting; poverty had climbed above 50 percent.
- Recent achievements:
  - Two consecutive years of primary fiscal surpluses for the first time in 15 years.
  - Inflation has fallen to around 30 percent.
  - Poverty has declined.
  - The central bank is rebuilding international reserves.
  - Sovereign borrowing costs have fallen.
  - All three major credit rating agencies have upgraded the country.
  - More than $45 billion in investment projects have already been approved under Argentina's large investment incentive framework.
  - The pipeline under development is more than twice that size.
- Attribution of achievements: reflects the commitment to stability and determined policy actions by Javier Milei’s administration and the perseverance of the Argentine people.

### From stability to growth and opportunities
- Stabilization restores time horizons for households, businesses, banks, and governments:
  - Families: shift from protecting against inflation to saving.
  - Businesses: ability to plan and invest for years rather than months.
  - Banks: willingness to extend longer-term credit.
  - Governments: opportunity to improve institutions rather than respond to emergencies.
- Historical parallel: Bulgaria’s experience with hyperinflation and a banking crisis in the 1990s — difficult reforms and persistence led to restored confidence, increased investment, job creation, improved living standards, and adoption of the euro earlier this year.
- Global context and challenges:
  - The global economy is becoming more uncertain.
  - Trade patterns are shifting.
  - Geopolitical tensions remain elevated.
  - Artificial intelligence is reshaping industries and labor markets at remarkable speed.
  - Capital is increasingly selective, flowing to countries that combine sound policies with predictable institutions.
- Policy implication: macroeconomic stability is a prerequisite for attracting investment, creating jobs, and remaining competitive.

### Unleashing potential
- Sectoral opportunities and strengths:
  - Vaca Muerta oil and gas fields demonstrate world-class natural resources and capable engineers, entrepreneurs, and leaders.
  - Mining investment is accelerating.
  - Knowledge-based services export nearly $10 billion annually.
  - Agriculture remains among the world’s most competitive sectors.
  - Argentina has world-class entrepreneurs, strong universities, and exceptional human talent.
- Business leaders’ perspective: renewed stability and growing investor confidence are welcome, but reducing barriers to investment and broadening recovery across more sectors are essential.
- Vignettes illustrating sentiment:
  - Marina, a makeup artist, works three jobs but hopes the country stays the course; her confidence that progress can last is increasing even though circumstances have not changed overnight.
  - Mora Godoy, a tango dancer, runs a dance school and offers scholarships, showing private initiative to expand opportunity.
  - Students focused on artificial intelligence, innovation, leadership, and Argentina's place in the global economy — concerned with competitiveness over coming decades.
- Measurement of success: not only lower inflation, stronger reserves, or healthier public finances, but whether more businesses invest; small and medium-sized enterprises expand; workers find better jobs and higher wages; and more Argentines see the benefits of growth in daily life.

### The next steps
- IMF’s role: support policies and institutions that make lasting stability possible.
- Recommended reforms and institutional priorities:
  - A stronger and more independent central bank to help ensure that progress on inflation endures.
  - A durable fiscal responsibility framework with clear rules and strong institutions to help future governments preserve hard-won gains.
- Expected outcomes from these reforms: allow families to plan, businesses to borrow and invest, and governments to look beyond the next crisis.
- Strategic challenge: Argentina has laid foundations for a more stable future; the central challenge is to stay the course and continue building institutions, confidence, and opportunities so today's progress becomes lasting prosperity.

*Kristalina Georgieva — July 31, 2026.*

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_Source: https://www.imf.org/en/blogs/articles/2026/07/31/argentina-looks-forward_